Centre amid glitches in the new tax portal as well as in view of the Covid situation has granted relief in respect of the number of compliances:
Here are some important reliefs:
1. For the employer who is required to furnish TDS form no. 16:
The date has now been shifted to July 31, implying that employers can now furnish this TDS form to employees latest by July 31 as against the earlier extended deadline of July 15.
The form is issued as part of the Section 203 of the Income Tax Act, 1961 and comprises two parts, Part A and Part B. While Part A includes all employee and employer information together with employee term and TDS deducted, Part B summarises the income earned during the year, deductions and hence the taxable income.
2. The timeline to invest capital gains for claiming tax deductions increased:
Section 54 of the Income Tax Act allows the person earning capital gains by way of transfer of property to reinvest the same and claim deduction on it. The exemption is allowed in a case if the proceeds from property transfer are invested in some specified timeline i.e. within 2 years (in case of purchase of new house) or within 3 years (in case of construction of a house) from date of transfer of original house property.
Now as per the latest relief extension, the government has said that in case any of the deadline is expiring between April 1, 2021 to September 29, 2021, it will be extended to September 30, 2021.
3. Payment under Vivad Se Vishwas scheme :
Payments under the scheme without paying additional amount can be now made until August 31 and with additional amount has been extended till October 31. This is a tax dispute settlement scheme in respect of direct taxes and comes with the idea of levying lower charges if the taxpayers settles all the dispute before the end of the FY 2019-20.
4. First time home buyer relief extended:
On the investment in residential house, first time home buyers could get special tax benefit. The extension in timeline for claiming such a benefit has now been extended by over 3 months from the earlier deadline of June 30, 2021.
5. No tax implication on ex-gratia received due to death from Covid 19:
Also, the centre has announced that in order no tax implication arises on any of the grant granted to kin of Covid victim, it has been decided that it shall be income tax exempt. This has also been applicable for all the borrowed sum from employer or family for the purpose of treatment of Covid 19.