He further advises employees to intimate their employers well in time to get a TDS deduction as per the new tax regime. Employers may switch between the new and old tax regimes by filling up Form 10-IE. However, self-employed people don’t enjoy this flexibility.
Jain further talks about tax relief offered in case of medical treatment for Covid-19. Any ex-gratia payment by the employer to employees for medical treatment of self or family will be tax-exempt. Donations received from family and friends have been capped at Rs 10 lakh. “The government has only issued a press release in this regard so far. Legislative amendment is yet to be done,” says Jain.
Jain further talks about taxation rules linked to cryptocurrencies. “Even as there are no defined guidelines by the government on gains incurred in cryptocurrencies, one must disclose it in ITR depending on the duration of the trade. If gains are booked frequently, it can be treated as business income and if one stays invested for the long-term, it will be considered as capital gains,” says Jain.
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