Tax exemption for expenditure on COVID treatment & ex-gratia received on death due to COVID in India

The Indian Ministry of Finance has issued a Press Release on June 25, 2021, announcing tax exemption for the amount received by a taxpayer for medical treatment from the employer or from any person for treatment of Covid-19 during FY 2019-20 and subsequent years.

In addition, the exemption shall be allowed without any limit for the amount received from the employer and the exemption shall be limited to INR 1 million (USD 13,500) in aggregate for the amount received from any other persons in case of death due to COVID-19.

The Ministry has stated that necessary legislative amendments for the above decisions shall be proposed in due course of time.

Click on the below button to read the complete Press Release.


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