Govt extends deadline for Aadhaar-PAN linkage; announces tax relief on COVID-19 ex-gratia

The government has extended the due date for of linkage of Aadhaar with PAN from June 30 to September 30, 2021, it announced on Friday. Apart from this, it has also extended the last date for payment under Vivad se Vishwas by 2-4 months. The last day for payment of amount under Vivad se Vishwas (without additional amount) which was earlier extended to June 30, 2021 is further extended to August 31, 2021.The last date of payment under Vivad se Vishwas (with additional amount) has been notified as October 31, 2021.

Government announces tax concessions 

It had also announced tax concessions on the amount paid for COVID-19 treatment in a bid to strengthen the fight against the pandemic. Additionally, tax exemption was also provided on the ex-gratia received by kin of the deceased. It stated that if ex-gratia is received from employers, the exemption is available without any upper limit and in case it is received from others, then the waiver will be available up to Rs 10 Lakh. 

The Central Board of Direct Taxes (CBDT) in a statement said that it has been decided to provide income-tax exemption to the amount received by a taxpayer for medical treatment from an employer or from any person for treatment of Covid-19 during FY20 and subsequent years. It also added that income tax exemption will be provided to the ex-gratia payment received by family members of a person from the employer or from other person on the death of the person on account of COVID-19 during FY20 and subsequent years. 

Amid COVID-19, several taxpayers have received financial help from the employers for providing them with the expenses incurred for the treatment of COVID-19. The legislative amendments for the decisions shall be proposed in due course of time.