The government extended the timelines of filing tax compliances amid COVID-19
The government extended deadlines for various income tax compliances on Friday, June 25, and said that the amount paid by an employer to employees for COVID-19 treatment would be exempted from tax, in order to provide relief amid the COVID-19 pandemic. The payment received from an employer by family members in case of the death of an employee due to COVID-19 would also be exempt from income tax, according to a statement by the Ministry of Finance. (Also Read: Easing Income Tax Norms, Centre Allows Cash Payment Of ₹ 2 Lakh For COVID Treatment )
As per the announcement, this means that any amount spent by a person for the treatment of an employee would become free from taxation. Also, the person who pays for the treatment and the beneficiary of the payment will not face any tax liability.
Tax exemptions on COVID-19 Treatment, Deaths:
Several taxpayers received financial help from their employers or well-wishers for meeting their expenses incurred in COVID-19 treatment, said the statement, adding that, income tax will be exempted on the amount received by a taxpayer from an employer or from any person.
The employers of those taxpayers who died due to COVID-19 had extended the financial assistance to their family members, in order to provide relief amid the difficulties due to the sudden loss of an earning member of the family. To provide further relief to those family members, the government exempted the income tax on the financial aid received from the taxpayer's employer or from any other person.
The government has allowed the exemption without any limit for the amount received from the employer and it will be limited to Rs. 10 lakh in aggregate for the amount received from any other persons.
Meanwhile, earlier last month, the Income Tax department announced that hospitals, nursing home, COVID care centres, or similar other medical facilities providing treatment for coronavirus could accept cash payment of ₹ 2 lakh or more till May 31, 2021, after receiving a valid identity proof such as PAN card or Aadhaar of the patient and the payee.
this copy is being updated
