New Income Tax Benefits for all Taxpayers : The recent press release report on new income tax guidelines, the union ministry has released 5 new guidelines on income tax after phasing through the permission of CBDT (Central Board of Direct Tax) which is anticipated to be citizen friendly in numerous ways. These new 5 rules levies a significant amount of tax relief from the overall amount of one’s calculated tax amount.
5 Rules of Tax Relief New Income Tax Benefits
- No Tax Deduction on Emergency Fund: There will be no tax deduction to the employees while seeking favour of emergency fund to covid ailment from respective employers. As per the press release’s note…lots of people need emergency cash to support the treatment of covid 19, which becomes unbearable at times. Hence, the union government has decided not to impose an extra burden of tax in case of covid treatment for the year of 2019-20 and subsequent years. The rule is imposed on both private and public sectors.
2. No Tax Levied on ex-gratia Payment : There will also be No tax levied on ex-gratia payment to the deceased family that has either been received from external sources and funds raised from friends, relatives and employers etc. An exemption of up to 10 lakhs has been leased for covid treatment that won’t fall under tax deduction criteria. On this exclusive norms of CBDT, Amit Mahasweri of AMK Global expressed cordial eulogy of the governmental initiative. He appreciated union ministry as well as CBDT through expressing…this step is truly welcoming and much needed to combat the current situation. For lots of people are facing difficulties at the time of paying covid bills and medication which appears to be expensive frequently. Thus taking a step to make ex-gratia payment tax free is truly a brave one and hope to work as a genuinely benefactor.
3. PAN-AADHAR linking date Extended : The date of PAN-AADHAR linking has been extended to June 30 to September 30 of this year under 139AA Income Tax Act. Tarun Kumar, a Delhi based CA expressed a positive opinion on this statement. He said…a lot of people are facing problems at the time of linking PAN number with AADHAR number. The extension of the date can improve the situation.
Reason behind the date Extension : To highlight the reason behind linking PAN with AADHAR, the CBDT said a person with a PAN card onwards from July 1 must link it with individual AADHAR in order to file a tax return. In case, he/she missed to link these within September 30, 2021, the PAN card will be inoperative and the person may have to carry a penalty of Rs. 1000. CBDT also glimpsed easy guidelines to proceed with the linking.
Process of Linking Aadhaar :
- A person must visit the new income tax portal i.e.www.incometax.gov.in
- Clicking on the tab named as ‘Our Service’ and get directed to Link AADHAR homepage
- Click on Link Aadhaar/ Know About your Aadhaar PAN linking Status option
- On the new pop up page insert your PAN and AADHAR number
- Then view ‘View Link Aadhaar Status’.
4. Vivaad Se Viswas Scheme : The deadline of making a payment (without additional payment) under Vivaad Se Viswas scheme has been extended from August 31 to the last date of October 31 now. On the oratory feedback from Shailesh Kumar, who is a partner of Nangia & Co LLP said “The extension of various due dates, be it for PAN-Aadhaar linking, for payment of tax/penalty under Vivaad Se Vishwas scheme, completion of assessment proceedings, completion of penalty proceedings, registration of charitable trusts and institutions of income tax exemption,etc. Will provide additional time, both to taxpayers as well as tax authorities for meeting the timeline,”
5. Tax Compliance Deadline Extended : The tax compliance deadline to save capital gains has been extended to September 30, 2021. Earlier deadline for the same for making investment, deposit, payment, acquisition, purchase, construction or other actions in order to save tax under the provision of section 54 to 54 GB income tax act, ranged from April 1 to June 30 of this year and after the declaration the date has been stretched to September 30. To explain the way it would benefit commoners or corporate, Tarun Kumar said that if a person was supposed to make an investment on personal house property via 54 EC bonds in order to save capital gains within the deadline of 30th June and he got additional two months on the same for making investment.
These New Rules are sigh of relief : New Income Tax Benefits for all Taxpayers
Albeit. Most of these new rules are either in process to be in shape or yet to be figured out, yet it’s clear that on a holistic usages of these new five rules can stand by as milestones of help to commoners. While tax free levy on covid medication expenditure ameliorate a simple middle class to release a sigh of relief, extended date of PAN-AADHAR linking allows digitally obscure or educationally obscured groups to decipher more of the process. Let’s hope to crave out positive feedback from these newly released central steps in the looming future.