RELIEF TO THE PUBLIC DURING COVID-
With the view of the ongoing pandemic in the country, offices, shops, markets and almost all such places were shut down. People had to stay at home to keep themselves and their families safe. Work came to an abrupt stop everywhere. New methods were adopted to continue working. A large section of people in the country didn’t have any financial aid. Government gave then released many plans to help the people.
HELP PROVIDED BY THE EMPLOYERS-
Not only that, many employers also stepped up to help their employees during the hard time. People who were infected with the corona disease were helped by their employers. The employers of many companies and organizations are helping their employees in many ways. And to encourage this, the government has released a new scheme.
TAX RELIEFS TO THE EMPLOYERS-
- On 25th June 2021, the government released a new tax relief to those people who were provided aid from their employers or other such people during the covid-19 time.
- The government also offered concessions for Ex-Gratia payments received by those families who have lost someone due to the disease.
- Anurag Thakur, Union Minister for State Finance released various measures related to tax relief for payments related to covid-19.
“Amount paid for medical treatment to an employee by the employer or to a person by any person on account of COVID for ’19-20 and subsequent year won’t be taxed in hands of employee/beneficiary,” said Anurag Thakur.
MAIN FEATURES OF THE RELIEFS-
- According to the announcement made by the Union Minister of State Finance, any person who has paid a sum to his employee or any other person for Covid-19 medical treatments will not be taxed.
- This relief is liable for the employer or the beneficiary who has made payment in the year 2019-20 or the subsequent years.
- In case of ex-gratia payments, tax exemptions would also be given to any person who comes to the aid of a bereaved
- If the person providing the aid is not the deceased’s employer, the tax exemption limit would be restricted to Rs 10 lakhs.