CBDT Covid-19 Tax Exemptions and Income Tax Compliance Due Date Extensions: Circular No. 12/2021
In response to the severe disruption caused by the Covid-19 pandemic, the Central Board of Direct Taxes (CBDT) announced significant relief measures through a Press Release and Circular No. 12/2021 dated 25th June 2021. These measures covered income tax exemptions for amounts received in connection with Covid-19 treatment and death, as well as extensions of due dates for 18 statutory compliance obligations under the Income-tax Act, 1961. This page serves as a reference record of these CBDT relief measures, which remain relevant for taxpayers and practitioners dealing with assessments, return filings, or queries pertaining to the covered financial years under India’s direct tax advisory framework.
Covid-19 Tax Exemptions Announced by CBDT
Through a Press Release dated 25th June 2021, CBDT announced tax exemptions for amounts received in connection with Covid-19 medical expenses and on account of death due to Covid-19. These exemptions apply from FY 2019-20 and subsequent financial years, and were subsequently enacted through legislative amendments.
Exemption for Covid-19 Medical Treatment Expenses
To ensure no tax liability on the recipient, amounts received for Covid-19 medical treatment are exempt from income tax irrespective of the source of payment whether from the employer, a relative, or any other person. This exemption applies from FY 2019-20 and subsequent years.
Exemption for Ex-Gratia Received on Death Due to Covid-19
In cases of death due to Covid-19, amounts received by the family members of the deceased are also exempt from income tax. The exemption is limited to ₹10 lakh where the ex-gratia is received from a person other than the employer of the deceased. No monetary cap applies where the amount is received from the employer. This exemption also applies from FY 2019-20 and subsequent years.
Individuals or families who received such payments and are dealing with pending assessments or return filings for the covered years may benefit from personal income tax compliance support to correctly claim and document these exemptions.
CBDT Extension of Income Tax Compliance Due Dates: Circular No. 12/2021
CBDT vide Notifications Nos. 74/2021 & 75/2021 and Income Tax Circular No. 12/2021 dated 25th June 2021 extended the due dates for several statutory compliance obligations under the Income-tax Act, 1961, in view of the challenges faced by taxpayers during the second wave of the Covid-19 pandemic. The extended deadlines are set out in the table below.
| S.No. | Particulars | Applicable Rule / Section | Original / Last Revised Due Date | Revised Due Date vide Circular No. 12/2021 | ||||
| 1 | Objections to Dispute Resolution Panel (DRP) and Assessing Officer | Sec 144C | 1st June 2021 or thereafter | Time Limit provided in Sec 144C or 31st August 2021, whichever is later | ||||
| 2 | Statement of Deduction of Tax for last Quarter of F.Y. 2020-21 | Rule 31A | On or Before 30th June 2021 | On or Before 15th July 2021 | ||||
| 3 | Furnishing of TDS Certificate (Form 16) to Employees | Rule 31 | On or Before 15th July 2021 | On or Before 31st July 2021 | ||||
| 4 | Statement of Income paid or credited by an investment fund to its unit holder (Form No. 64D) | Rule 12CB | On or Before 30th June 2021 | On or Before 15th July 2021 | ||||
| 5 | Statement of Income paid or credited by an investment fund to its unit holder (Form No. 64C) | Rule 12CB | On or Before 15th July 2021 | On or Before 31st July 2021 | ||||
| 6 | Application for registration / provisional registration / intimation / approval / provisional approval of Trusts / Institutions / Research Associations etc. (Form No. 10A / Form No. 10AB) | Sec 10(23C), 12AB, 35(1)(ii)/(iia)/(iii) and 80G | On or Before 30th June 2021 | On or Before 31st August 2021 | ||||
| 7 | Compliances such as investment, deposit, payment, acquisition, purchase, construction or such other action for claiming Exemption | Sec 54 to 54GB | Between 1st April 2021 to 29th September 2021 | On or Before 30th September 2021 | ||||
| 8 | Furnishing of Quarterly Statement by authorised dealer in respect of remittances made in Form 15CC | Rule 37BB | On or Before 15th July 2021 | On or Before 31st July 2021 | ||||
| 9 | Equalisation Levy Statement (Form No. 1) | Sec 167 | On or Before 30th June 2021 | On or Before 31st July 2021 | ||||
| 10 | Furnishing of Annual Statement by eligible Investment Fund (Form 3CEK) | Sec 9A(5) | On or Before 29th June 2021 | On or Before 31st July 2021 | ||||
| 11 | Uploading of Declaration in Form 15G/H during the Quarter Ending on 30th June 2021 | Sec 197(A) | On or Before 15th July 2021 | On or Before 31st August 2021 | ||||
| 12 | Exercising of option to withdraw pending application (filed before the erstwhile Income Tax Settlement Commission) in Form 34BB | Sec 245M(1) | On or Before 27th June 2021 | On or Before 31st July 2021 | ||||
| 13 | Linkage of Aadhaar with PAN | Sec 139AA | On or Before 30th June 2021 | On or Before 30th September 2021 | ||||
| 14 | Payment of amount under Vivad se Vishwas (without additional amount) | Section 3 of Direct Tax VSV Act 2020 | On or Before 30th June 2021 | On or Before 31st August 2021 | ||||
| 15 | Payment of amount under Vivad se Vishwas (with additional amount) | Section 3 of Direct Tax VSV Act 2020 | On or Before 30th June 2021 | On or Before 31st October 2021 | ||||
| 16 | Time Limit for passing assessment order | Section 153 / 153B | On or Before 30th June 2021 | On or Before 30th September 2021 | ||||
| 17 | Time Limit for passing penalty order | Chapter XXI of the Income-tax Act | On or Before 30th June 2021 | On or Before 30th September 2021 | ||||
| 18 | Time Limit for processing Equalisation Levy returns | Sec 168 | On or Before 30th June 2021 | On or Before 30th September 2021 | ||||
Article contributed by: Hitesh Mittal / Deepak Dewan, MBG Corporate Services
Additional Resources
For further reading on related direct tax compliance and CBDT notification topics, the following MBG insights may be useful:
- CBDT Clarificatory Guidelines for TDS on Purchases
- CBDT Valuation Rule for Computing FMV Under Slump Sale
- Direct Tax Alert: Extension of Various Income Tax Due Dates by CBDT
- Supreme Court Directs CBDT to Decide on Income Tax Relief for NRIs Under Covid-19
- Income Tax Bill 2025: A Simplified Tax Framework for India