Govt announces tax reliefs under IT act. Here's what you need to know

Income-tax exemption was announced on the amount received by a taxpayer for treatment of Covid-19 from their employer or any other person during the financial year 2019-20 and subsequent years, a release issued by the Union ministry of finance said.

The government on Friday granted an extension in timelines of compliances under the Income Tax Act in view of the coronavirus disease (Covid-19). It also announced tax exemption for expenditure on the treatment of Covid-19 and the ex-gratia received on death due to the disease.

I-T Act: The government has granted further extension in timelines of compliances. (Representative Photo)

Among other reliefs, income tax exemption was announced by the government on the amount received by a taxpayer for treatment of Covid-19 from their employer or any other person during the financial year 2019-20 and subsequent years, a release issued by the Union ministry of finance said.

It was also decided that income-tax exemption would be provided on ex-gratia payment received by family members of those who have succumbed to the disease.

Here is all you need to know about the tax reliefs:

-- The deadline for the linking of PAN card and Aadhaar card was extended by three months till September 30, 2021.

-- The time to invest in a residential house for tax deduction was extended by more than three months and the ‘Vivad se Viswas' payment without interest is extended by two months from June 30 to August 31.

-- However, taxpayers will have the option to make payments till October 31 with an additional amount of interest.

-- The due date for furnishing TDS statement for the last (January-March) quarter of 2020-21 was extended to July 15, from June 30, 2021.

-- The certificate of tax deducted at source in Form 16 may be furnished on or before July 31, 2021.

-- The deadline to submit the equalization levy was extended from June 30 to July 31, 2021.

-- Objections to dispute resolution panel (DRP) and assessing officer under section 144C of the IT Act, 1961, may be filed within the time provided in that section or by August 31, 2021, whichever is later, the release said. For this, the last date of filing was June 1, 2021.