Centre announces tax concessions on money received for Covid treatment – Times of India
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NEW DELHI: The government on Friday announced income tax concessions for payment towards Covid-19 treatment or in the event of death.
Announcing the measures, minister of state for finance Anurag Thakur said that the measures have been undertaken to strengthen India’s fight against the Covid-19 pandemic.
As part of the measures, the Centre has decided to give tax relief for payment made by employer to an employee, or by an individual to another, for treatment of Covid-19.
“Amount paid for medical treatment to an employee by the employer or to a person by any person on account of coronavirus for 2019-20 and subsequent year won’t be taxed in hands of an employee or the beneficiary,” Thakur told news agency ANI.
Further, ex-gratia payment by the employer to an employee’s family or by any person to any other person’s family on the death of the patient on account of Covid will also be exempted from tax for the financial year 2019-20 or subsequent year.
The amount of ex-gratia payment from any person has also been restricted to Rs 10 lakh, the minister added.
“In view of the impact of the Covid-19 pandemic, taxpayers are facing inconvenience in meeting certain tax compliances and also in filing response to various notices.
“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.
Watch I-T Dept announces tax concessions for payment towards Covid-19 treatment
Announcing the measures, minister of state for finance Anurag Thakur said that the measures have been undertaken to strengthen India’s fight against the Covid-19 pandemic.
As part of the measures, the Centre has decided to give tax relief for payment made by employer to an employee, or by an individual to another, for treatment of Covid-19.
“Amount paid for medical treatment to an employee by the employer or to a person by any person on account of coronavirus for 2019-20 and subsequent year won’t be taxed in hands of an employee or the beneficiary,” Thakur told news agency ANI.
Further, ex-gratia payment by the employer to an employee’s family or by any person to any other person’s family on the death of the patient on account of Covid will also be exempted from tax for the financial year 2019-20 or subsequent year.
The amount of ex-gratia payment from any person has also been restricted to Rs 10 lakh, the minister added.
“In view of the impact of the Covid-19 pandemic, taxpayers are facing inconvenience in meeting certain tax compliances and also in filing response to various notices.
“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.
Watch I-T Dept announces tax concessions for payment towards Covid-19 treatment
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