The Indian government recently granted an extension of timelines of compliances under the Income Tax Act and has also announced tax exemption for expenditure on COVID-19 treatment and ex-gratia received on death due to COVID-19. Necessary legislative amendments for implementing these decisions shall be proposed in due the course of time, the finance ministry said.
Income tax exemption will be provided to the amount received by a taxpayer for medical treatment from an employer or from any person for treatment of COVID-19 during fiscal 2019-20 and subsequent years, the ministry said in a press release.India recently granted an extension of timelines of compliances under the Income Tax Act and has also announced tax exemption for expenditure on COVID-19 treatment and ex-gratia received on death due to COVID-19. Necessary legislative amendments for implementing these decisions shall be proposed in due the course of time, the finance ministry said.#
Income tax exemption will also be offered to ex-gratia payment received by family members of a person from the employer of such person or from other person on the death of the person on account of COVID-19 during fiscal 2019-20 and subsequent years, finance minister Nirmala Sitharaman said during a press conference today.
"The exemption shall be allowed without any limit for the amount received from the employer and the exemption shall be limited to ₹10 lakh in aggregate for the amount received from any other persons," the government notification stated.
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