Government announces tax exemption for expenditure on COVID-19 treatment and ex-gratia received on death due to COVID-19.

Government has 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.

Exemption is as under:
• Received from Employer - No limit
• Received from any other person - Rs. 10 Lakhs (in aggregate from all persons)

Author's Note: The death of the person should be on account of COVID-19. So, all the treatment related papers, hospital bills, medicine prescriptions etc. should be preserved in order prove cause of death. However, this depends upon what provisions are to be proposed in the Act.

Necessary legislative amendments for the above decisions shall be proposed in due course of time.

Source: PIB dated 25-06-2021