Centre extends several I-T compliance deadlines

New Delhi: The government on Friday extended deadlines for various income tax compliances and also exempted from tax the amount given by an employer to employees for COVID-19 treatment.

The last date for PAN-Aadhaar linking too has been extended by three months to September 30, 2021, while the same for furnishing Tax Deducted at Source (TDS) certificate in Form 16 to the employees by employers has been extended till July 31, from July 15, 2021.

Also, ex-gratia payments received from employers by family members in case of employees' death due to COVID would be exempt from income tax in fiscal 2019-20 and subsequent years. The limit for such tax-exempted payment would be Rs 10 lakh in case it is received from any other person.

The Central Board of Direct Taxes (CBDT) said in a statement that many taxpayers have received financial help from their employers and well-wishers for meeting their expenses incurred for treatment of COVID-19. "In order to ensure that no income tax liability arises on this account, it has been decided to provide income-tax exemption to the amount received by a taxpayer for medical treatment from employer or from any person for treatment of Covid-19 during FY 2019-20 and subsequent years," it added.

In case of taxing capital gains arising out of transfer of residential house property, the CBDT said for relief in taxation, the re-investment deadline would be September 3, 2021 for such capital gains.

Section 54 of the Income Tax Act provides that in case there is capital gain on account of transfer of a residential house property, such capital gain can be exempt from tax if the taxpayer invests the capital gain amount into another house property 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.

The CBDT circular now provides that in case any such time period of 2 / 3 years is expiring between April 1, 2021 to September 29, 2021, it will be extended to September 30, 2021.

Besides, the deadline for making payments under the Vivad Se Vishwas direct tax dispute resolution scheme has been extended by two months till August 31.

However, taxpayers 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 the 2020-21 has been extended to July 15, from June 30, 2021.

The quarterly statement in Form 15CC to be furnished by an authorised dealer for remittances made for the June quarter would have to furnished by July 31.