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Direct Tax Alert

Tax Exemptions & Extension of time limits for compliances of Income Tax

July 05, 2021

Pandemic has effected everyone at large in some way or the other. In consideration of the hardship caused by Covid-19, the Government has announced various relief resources in the terms of extension of timelines as well as relief to affected persons.These have been discussed herein below.

Tax Exemptions

The Central Board of Direct Taxes (“CBDT”) through Press Release, dated 25th June, 2021, has announced tax exemption for expenditure on Covid-19 treatment and ex-gratia received on death due to Covid-19.The salient features of the same is as below:

  • To ensure no tax liability on the recipient, for the amounts received by him/her for his/her Covid 19 medical treatment, such amounts have been decided to be exempt from tax irrespective of whomsoever gives the money. This shall be applicable for FY 2019-20 and subsequent years.
  • In case of death of person due to Covid-19, the amount received by his/her family  members are also  decided to be exempt from tax.The exemption shall be  limited to 10 lacs in case received from person other than employer of deceased. This shall be applicable for FY 2019-20 and subsequent years.

Necessary legislative amendments for the above decisions shall be proposed by CBDT in due course of time.

Extension of time limits for compliances of Income Tax

The Central Board of Direct Taxes (“CBDT”) vide Notifications nos.74/2021 & 75/2021 dated 25th June, 2021 Income Tax Circular No. 12/2021, dated 25th June, 2021, has extended several due dates in respect of following statutory compliances under the Income-tax Act, 1961 (“the Act”)  considering the challenges faced by the taxpayers in resurgence of COVID-19 pandemic.

S.No. Particulars Applicable Rule/ Section Original Due Date/Last Revised Due Date Revised Due Date vide Circular No 12
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 30thJune, 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 The Statement of Income paid or credited by an investment fund to its unit holder (Form No. 64D) Rule 12CB On or Before 30thJune, 2021 On or Before 15th July, 2021
5 The 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 30thJune 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 Sep, 2021.
8 Furnishing of Quarterly Statement by authorized dealer in respect of remittances made in  Form 15CC Rule 37BB On or Before 15thJuly 2021 On or Before 31st July, 2021
9 Equalization 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 15thJuly 2021 On or Before 31st Aug, 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 Aadhar with PAN Sec 139AA On or Before 30th June, 2021 On or Before 30th Sep, 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 Aug, 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 Oct, 2021
16 Time Limit for passing assessment order Section 153/153B On or Before 30th June, 2021 On or Before 30th Sep, 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 Sep, 2021
18 Time Limit for processing Equalisation Levy returns Sec 168 On or Before 30th June, 2021 On or Before 30th Sep, 2021
 

Last updated: 05/07/2021

Article contributed by:

Hitesh Mittal / Deepak Dewan

MBG Corporate Services

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