The Income Tax Department has recently issued a new order for tax exemption, giving great relief to taxpayers. According to the new order, now taxpayers will be exempted from income tax on the amount received for treatment. The Income Tax Department keeps on changing the rules from time to time for the convenience of taxpayers.
The Central Board of Direct Taxes (CBDT) had recently issued new conditions and a form for claiming exemption on income tax on the amount spent on Covid-19 treatment. According to the notification dated 5 August 2022, you will have to submit certain documents to your employer and a form to the Income Tax Department, in which tax exemption can be claimed on the amount received from the employer or relatives for the treatment of Covid-19.
The new rule came into force from this day
Last year, the central government announced that income tax will not be levied on ex-gratia received by someone for COVID-19 treatment or by family members on death due to COVID-19. It was also notified in the budget 2022. This exemption is effective from the financial year 2019-2020. Apart from this, the Income Tax Department had also announced formation of committees for early disposal of any kind of complaints.
All work will be done digitally
For the convenience of the people and for the purpose of promoting digitization, the Income Tax Department had digitized the forms required to avail tax exemption from it. Now you will not need to go round the office for many works.
Tax collection increased by 24 percent
In the current financial year, between April and November, the net direct tax collection has increased by 24 percent to reach Rs 8.77 lakh crore. The Income Tax Department has recently given this information. This tax collection is 61.79 percent of the budget estimate for the whole year 2022-23. The ministry told through social media, “The net direct tax collection till November 30 stood at Rs 8.77 lakh crore, which is 24.26 percent more than the net collection of the same period last year.”