The government has announced Income Tax exemptions for monetary aids received by people for Coronavirus treatment. It has also given tax exemption to ex gratia received by kin of the deceased. If the ex gratia is received from employers, the exemption is available without any upper limit, and, in case it is received from others, the waiver will be available up to Rs 10 lakh.

The measures have been announced in light of the second COVID wave’s impact on the economy. Many taxpayers have received financial help from their employers and well-wishers for meeting their expenses incurred for treatment of COVID-19. Necessary legislative amendments for the decisions shall be proposed in due course of time, the government has added. 

In view of the impact of the COVID-19 pandemic, taxpayers are facing inconvenience in meeting certain tax compliances and also in filing response to various notices.

The government has also extended the due date of various compliances, including the last date of linkage of Aadhaar with PAN from June 30 to September 30, 2021 as well as last date for payment under Vivad se Vishwas by two to four months. 

The last date of 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. Last date of payment under Vivad se Vishwas (with additional amount) has been notified as October 31, 2021.