The Centre has announced tax exemptions to incentivise employers and members of the public for assisting people with Covid-19 treatment expenses and also those who have lost their kin to the virus.
Minister of state in the finance ministry, Anurag Thakur confirmed the development. He said, “Amount paid for treatment of an employee by an employer or to any another person in 2019-20 and subsequent will not be taxed.”
The finance ministry released a detailed notification regarding the tax exemptions. As per the ministry, any amount spent by anyone for the treatment of an employee or someone else would become free from taxation. In simple terms, the person who pays for the treatment and the beneficiary of the payment will not face tax liability.
TAX EXEMPTION ON COVID-19 TREATMENT, DEATHS
The government said that many taxpayers have received financial help from their employers and well-wishers for meeting their expenses incurred in Covid-19 treatment. It has announced that there will be no tax liability on such amounts.
“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 an employer or from any person for treatment of Covid-19 during FY 2019-20 and subsequent years,” said the finance ministry’s notification.
Source: India Today