COVID-19 Tax Updates

These are testing times, and the government is trying to ease down the compliance burden.

Here are the major tax updates related to Covid-19 relief.

Income Tax Changes

  1. Extended the due date to file belated/revised return for FY 2019-21 (AY 2020-21) from 31st March 2021 to 31st May 2021
  1. Income Tax Relief for Cash Payments over INR 2 Lakh of Covid Bills

MCA Changes:

  1. Relaxation of time for filing certain forms that were to be filed between 1st April 2021 to 31st May 2021 under the Companies Act, 2013. These forms can now be filed until 31st of July 2021 without any additional fees.
    1.1. Relaxation of time for Charge Forms: MCA has issued a condonation of delay in respect of CHG-1 and CHG-9 where the date of creation/ modification of charge is before 01/04/2021, but the timeline of filing such forms has not expired or the date of filing falls between 01/04/2021 to 31/05/2021

  2. Gap between two board meetings under section 173 of the Companies Act, 2013 (CA-13) has been extended from 120 days to 180 days for Q1 & Q2 of 2021.

I am not expecting a huge increase in salary due to the COVID-19 impact on business, but how can I increase my take-home salary?

Amidst the lockdown, we are all working from home. What are the expenses and allowances I can claim?

Hey @riya_gupta

These are testing times for everyone.
You can increase your Net Salary/Take Home Salary by planning your tax-saving investments u/s 80C and other Chapter VI-A deductions.

This will reduce your taxable income and TDS on Salary. But it is only possible if you provide your investment declaration to your employer correctly in Form 12BB.

Since it is the beginning of the financial year, it the right time to plan your investments and taxes.

Hope this helps :slight_smile:

Hey @TanyaChopra

You can claim allowances like electricity and Wi-Fi expense while working from home during the COVID-19 lockdown.