The government is thinking a lot about how to give tax breaks to employees who work from home.
The government is preparing to provide tax breaks for domestic workers to work with. This acronym was born in the COVID-19 Pandemic. It’s been a year of lockdown. Industries and offices were closed. However, the majority of employees in India are not allowed and are not ready to go back to official status. Therefore, the future of the job will be hybrid.
As a result, the government is thinking a lot about how to give tax breaks to employees who work from home for the welfare of the community.
In most cases, some employers provide allowances, reimbursements, and additional assets to meet the needs of their employees. If such allowances are paid by the employer for these additional expenses, the above allowances will be taxed in the hands of the employees. The reason is the lack of special exemptions in tax laws.
The expenses they incur and incur while working from home would be borne by the employer if they worked in the office and the employees worked in the office. If you allow those expenses for the tax deduction, it will save them more money. The government can do this because it is fair enough.
If such a measure were taken and implemented by the government, it would be reasonably equal, because if businesses had to maintain that cost, it would be a discounted cost on their books.
It mimics the atmosphere of transferring money into the hands of those individuals (domestic workers) by giving discounts/rebates on COVID-related expenses, and the mechanics of the economy will create demand for thousands of rupees in their hands every month.
Over the past two years, the government has introduced a general amnesty scheme for excise and service tax and the ‘ Vivad Se Vishwas’ scheme for resolving direct tax disputes.
Customs had not previously considered levying the tariff, which may be the right time to get the scheme together, thus allowing the industry to pay the disputed tax and if you avoid the penalty, you could be able to raise a domain of RS 15,000-20,000 crore. If the authorities want to raise extra money and bear the cost of vaccines instead, the effect will not be limited to a few products, but on a broader basis. Moreover, it is applicable in terms of the base value, not tax value.