Payroll & Compliance – The Monthly Chronicle – July 2021
In this edition, learn about key legislative updates including:
- Government announces tax relief for COVID-19 reimbursement
COVID-19 has impacted the life of many families both emotionally and financially. During this difficult phase many taxpayers have received financial support from their employers and from well-wishers for meeting the expenses incurred in treatment of Covid-19.
Recently, Government of India has announced that any financial support received for the treatment of COVID 19 from employer or other well-wisher will be exempted from tax for the period FY2019 20 and subsequent years. Earlier, these financial supports were considered taxable.
The exemption for such medical treatment expense or reimbursement shall be allowed without any restriction in limit if the amount is received from the employer.
The exemption shall be restricted to Rs. 10 lakhs in aggregate for the amount received from any other persons
Click here to read the COVID relief details.
Note: The official notification for the above change is yet to be issued with proper details of section and process to claim such exemption.
The newsletter also covers some other topics:
- Income Tax due date extended
- New penalty section 206AB and 206CCA introduced
- AADHAAR linking and seeding with UAN due date extended
- PAN AADHAAR linking extended
- Employee Provident Fund and Pension Account may be separated
- New Password Policy implementation in ESIC portal
- Labour department promotes Work from Home for Nursing Mothers
- AtmanirbharBharath Rozgar Yojana (ABRY) Scheme extended till March 2022
- New functionality for approval of DSC /e-sign requests under EPFO