Money received for treatment of coronavirus to be exempted from Income Tax
New Delhi : In a big relief to Indian taxpayer, the government has extended deadlines for various income tax compliances and said the amount paid by an employer to employees for COVID-19 treatment will be exempted from Income tax.
The ex-gratia amount received by the family of deceased will also be exempted from income tax this year.
On Friday, Minister of State for Finance Anurag Thakur announced new tax exemptions related to Coronavirus deaths and treatment.
The MoS Finance said that the amount paid for medical treatment to an employee by the employer or to a person by any person on account of COVID-19 for 2019-20 and subsequent year won’t be taxed in hands of an employee or the beneficiary.
Thakur added that ex-gratia payment by the employer to an employee’s family or by any person to any other person’s family on the death of employee or any other person on account of COVID-19 for 2019-20 or subsequent year will be tax exempted.
Meanwhile, the ex-gratia amount has been restricted to a maximum of Rs 10 lakh.