As per proviso to section 56(2)(x) any amount of money or property received by the family member of a deceased member will not be considered as income under Income from other sources.
Provided if the amount is received from any person other than employer the amount upto Rs. 10 lakh shall not be considered as income.
Relevant extract of the provision is as under:
“(XIII) by a member of the family of a deceased person—
(A) from the employer of the deceased person; or
(B) from any other person or persons to the extent that such sum or aggregate of such sums does not exceed ten lakh rupees,
where the cause of death of such person is illness related to COVID-19 and the payment is—
(i) received within twelve months from the date of death of such person; and
(ii) subject to such other conditions, as the Central Government may, by notification in the Official Gazette, specify in this behalf.”
Now CBDT has vide notification 92/2022 Dt. 05.08.2022 prescribed a form and various details which the family member needs to file and maintain to claim such income as exempt from tax.
As per the notification the death of the person for whom money was received should be within 6 months of being tested positive for Covid-19.
Further, the family member have to provide the information in Form A within 9 months from the end of financial year or till 31.12.2022 whichever is later.
Relevant extract of the notification is as under:
In exercise of the powers conferred by clause (XIII) of the first proviso to clause (x) of sub-section (2) of section 56 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies the following conditions, namely:-
1. (i) the death of the individual should be within six months from the date of testing positive or from the date of being clinically determined as a COVID-19 case, for which any sum of money has been received by the member of the family;
(ii) the family member of the individual shall keep a record of the following documents, –
(a) the COVID-19 positive report of the individual, or medical report if clinically determined to be COVID-19 positive through investigations in a hospital or an in-patient facility by a treating physician;
(b) a medical report or death certificate issued by a medical practitioner or a Government civil registration office, in which it is stated that death of the person is related to corona virus disease (COVID-19).
2. Statement of any sum of money received by a member of the family of a deceased person from the employer of the deceased person or from any other person or persons, on account of death due to COVID-19 for the purposes of clause (XIII) of the first proviso to clause (x) of sub-section (2) of section 56 of the Income-tax Act, 1961 shall be verified and furnished in Form A.
3. The details of the amount received in any financial year shall be furnished in Form A to the Assessing Officer within nine months from the end of such financial year or 31.12.2022 whichever is later.
|3.||Permanent account number:|
|4.||Relationship of the recipient with the deceased person:|
|5.||Details of diagnosis of being positive for COVID-19||Dd/mm/yyyy;
S.No./ Id No. of the medical report/ test report
|6.||Details of death due to COVID-19 and a medical report or death certificate issued by a medical practitioner or a Government civil registration office, in which it is stated that death is related to corona virus disease (COVID-19):||Dd/mm/yyyy;
S.No./ Id No. of the medical report
(a) from the employer of the deceased:
(b) from other person or persons:
|8.||Name, address and PAN of the employer of the deceased:|
|9.||Previous year in which the amount has been received:|
|10.||Amount received from the employer:||(In Rs)|
|11.||Name, address and PAN of the other person/persons:|
|12.||Previous year in which the amount has been received:|
|13.||Amount received from other person/ persons:||(In Rs)|
|14.||Total amount received (11+13)||(In Rs)|
I, (Name in full and in block letters) son/daughter/wife of do hereby declare that:
To the best of my knowledge and belief whatever is stated in the above columns including the documents attached supporting the statement is correct and complete.
I further declare that during the previous year…… mm/dd/yyyy the total amount received by me is
solely on account of death of my family member due to COVID-19. Place:
This notification shall be deemed to have come into force from the 1st day of April, 2020 and shall apply in relation to the assessment year 2020-2021 and subsequent assessment years.
It is important to note here that it has not been mentioned above in the notification that such Form needs to be submitted electronically to the AO and hence it can be assumed that as of now such Form will have to be submitted offline to the AO.
To read full notification CLICK HERE: notification_92_2022.pdf (incometaxindia.gov.in)
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