Income Tax Exemption for COVID-19 Treatment

Income Tax Exemption for COVID-19 Treatment : The Central Government has 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 financial year 2019-20 and subsequent years.

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
RAJYA SABHA
STARRED QUESTION NO: 16

ANSWERED ON- 20.07.2021

INCOME TAX EXEMPTION FOR COVID-19 TREATMENT

*16. SHRI SANJAY SETH:
Will the Minister of FINANCE be pleased to state:

(a) whether the Government has 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 financial year 2019-20 and subsequent years and, if so, the details thereof and the aims and objective behind the move; and

(b) whether Government has also extended some key tax compliance deadlines due to impact of COVID-19 pandemic and, if so, the details thereof?

ANSWER
FINANCE MINISTER
(SHRIMATI NIRMALA SITHARAMAN)

(a) & (b): A statement is laid on the table of the House.

Statement referred to in the reply to the Rajya Sabha Starred Question No. 16 raised by Sh. Sanjay Seth regarding “Income tax exemption for COVID-19 treatment”

(a) Yes Sir, the Government has 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 financial year 2019-20 and subsequent years.

The aim of this exemption is to provide relief to taxpayers who suffered on account of COVID-19 and had to incur expenditure for medical treatment of COVID-19 after taking help from employer or any person.

(b) Yes Sir, the Government has extended various key tax compliance deadlines under both direct taxes and indirect taxes due to impact of COVID-19 pandemic. The details of these extended timelines is provided at Annexure.

See the Annexure