The government has announced some tax benefits on the amount spent towards COVID-19 treatment. The amount spent for the treatment by a person or an employee would become free from taxation. This means that if a person received financial aid for the treatment, it will not be taxable.
The government said that many taxpayers have received financial help from their employers and well-wishers for meeting their expenses incurred in Covid-19 treatment. It has announced that there will be no tax liability on such amounts.
“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 ex-gratia payments of up to ₹10 lakh from employers and other well-wishers to the families of those who passed away on account of COVID-19 during FY 2019-20 and subsequent years will also be exempted from the tax.
For the COVID-19 treatment costs, there is no upper limit for the tax break.
Read the press release by the Fin Min on the exemption @ https://incometaxindia.gov.in/Lists/Press%20Releases/Attachments/945/PressRelease_Government_grants_further_extension_in_timelines_compliances_25_6_21.pdf
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