In our previous post we have seen that government has extended various due dates under the Income tax act and in the same press release government has also announced some exemption.
We have seen that during the time of Covid-19 pandemic various companies have been offering monetary help to it’s employees for getting better treatment and even various celebrities like Sonu sood and others are coming ahead to help people. Further various individuals are also helping other fellow human being in such tough times as people don’t have jobs and hence don’t have money for their treatment.
Therefore Government has announced an exemption for any money received by people as financial help for treatment of Covid-19 during FY 2019-20 and subsequent years.
Further, exemption has also been provided for amount received ex-gratia from the employer by the family member without any limit and upto Rs. 10 lakh in case of any other person.
This seems to be a good move by government to provide some relief to the people who are already suffering from financial problems.
The Press release read as under:
“Many taxpayers have received financial help from their employers and well-wishers for meeting their expenses incurred for treatment of Covid-19. 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.
Unfortunately, certain taxpayers have lost their life due to Covid-19. Employers and well-wishers of such taxpayers had extended financial assistance to their family members so that they could cope with the difficulties arisen due to the sudden loss of the earning member of their family. In order to provide relief to the family members of such taxpayer, it has been decided to provide income-tax exemption 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 FY 2019-20 and subsequent years. 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.”
It has been further mentioned that necessary legislative amendment will be made to incorporate the same.
To read the full press release CLICK HERE.
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