Indian Govt Exempts Covid-19 Treatment Expenses From Income Tax

The Central Board of Direct Taxes, under the Finance Ministry, has notified new conditions to claim tax deductions on Covid- 19 treatment expenses. A notification by the board dated August 5, 2022, informed such taxpayers that they have to submit certain documents to their employer and a form submitted to the income tax department to claim exemption from the tax.

Last year, the Union government led by the BJP announced money received by individuals for Covid-19 treatment or on death due to Covid 19 would be exempt from income tax.

The tax exemption was also notified in Budget 2022. Here is the list of documents to be submitted for tax exemption-

The Covid- 19 positive reports of an individual or his/ her family members.

Necessary documents for medical treatment of the concerned member within six months from the date of being determined as Covid-19 positive.

Documents to support the expenses incurred by the individual for the medical treatment:

Following the notification, a statement of any amount received for the expenses of the Covid -19 treatment for clause (XII) of the first proviso to clause (X) of sub-section (2) of section 56 of the Income-tax Act, 1961 will be verified and furnished in Form No. 1.

Form no. 1 includes details like PAN card, details of diagnosis, expenses incurred, Name, address, and PAN of the concerned person affected with Covid- 19, and financial year when the amount was received.

In case of death of the person:

The concerned person’s death should be within six months from the date of testing positive. A concerned person is the one who died because of Covid and the taxpayer trying for the exemption should have received the amount from a family member for the diagnosis.

Apart from the above, family members must attach the following detail of the concerned individual-

Covid-19 positive report of the individual, or medical report:

A medical report or death certificate issued by a medical practitioner or a Government civil registration office stating the person died because of Covid.

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