Govt. Announces Income Tax Relief For Covid 19 Treatment
- ByStartupStory | June 26, 2021
To provide relief to those who have been affected by the second wave of Covid, the Central Board of Direct Taxes (CBDT) has extended various deadlines related to income tax returns. Those who have received financial assistance from their employees, friends, and family for Covid 19 treatment will not have to pay tax for the amount, the CBDT. “Many taxpayers have received financial help from their employers and well-wishers for meeting their expenses incurred for treatment of Covid-19. In order to ensure that no income tax liability arises on this account, it has been decided to provide an income-tax exemption to the amount received by a taxpayer for medical treatment from an employer or from any person for treatment of Covid-19 during FY 2019-20 and subsequent years,” the regulator said in a statement.
Families receiving ex-gratia payment of a person who has died due to covid 19 from an employer will be exempted from tax without any limit. The tax exemption will be limited to Rs 10 lakh for the amount received from any other persons such as friends and family. This new move will provide a huge relief to those taxpayers who have been severely affected by a coronavirus. “Necessary legislative amendments for the above decisions shall be proposed in due course of time,” the CBDT said. Saraswathi Kasturirangan, Partner, Deloitte India said, “The announcement provides significant relief to the beneficiaries of Covid relief. Any financial assistance received by a taxpayer for Covid treatment will be totally tax-exempt. These benefits are available for FY 2019-20 and beyond”.
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