Relief For Taxpayers! Govt Announces Tax Exemptions For Covid Treatment, Death - Details Here

New Delhi: Extending yet another relief to taxpayers affected during the second wave of Coronavirus, the Central government on Friday announced tax exemption for expenditure on Covid-19 treatment during FY 2019-20 and subsequent years.

Also, the government has said that tax rebates will be given to those who have received or even given ex-gratia on death due to Covid-19.

As per the announcement, the ex-gratia payments received from employers by family members in case of employees' death due to Coronavirus would be exempt from income tax in fiscal 2019-20 and subsequent years.

The limit for such tax-exempted payment would be Rs 10 lakh in case it is received from any other person.

"The exemption shall be allowed without any limit for the amount received from the employer and the exemption shall be limited to Rs. 10 lakh in aggregate for the amount received from any other persons,"the notification issued by government read.

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While making the announcement, Minister of state in the finance ministry, Anurag Thakur said: "Amount paid for treatment of an employee by an employer or to any another person in 2019-20 and subsequent will not be taxed."

With this announcement, any amount spent by a person for the treatment of an employee or someone else would become free from taxation. This means, any person who has paid for the treatment and the beneficiary of the payment will not face tax liability.

"In order to ease the compliance burden of taxpayers during this difficult time, reliefs are being provided...," the Central Board of Direct Taxes (CBDT) said in a statement.

"In order to ensure that no income tax liability arises on this account, it has been decided to provide income-tax exemption to the amount received by a taxpayer for medical treatment from employer or from any person for treatment of Covid-19 during FY 2019-20 and subsequent years," it added.

Additionally, the government has also extended deadline for PAN-Aadhaar linking too has been extended by three months to September 30, 2021, while the same for furnishing Tax Deducted at Source (TDS) certificate in Form 16 to the employees by employers has been extended till July 31, from July 15, 2021.