Aadhaar-PAN linkage deadline extended to Sept 30: Tax relief on ex-gratia for Covid deaths, aid for treatment costs

In light of the second Covid wave’s impact on the economy, the government on Friday announced income tax exemptions for monetary aids received by people for coronavirus treatment. It also gave tax exemption to ex-gratia received by kin of the deceased — if received from employers, the exemption is available without any upper limit, and, in case received from others, the waiver will be available up to Rs 10 lakh.

“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 employer or from any person for treatment of Covid-19 during FY20 and subsequent years,” the Central Board of Direct Taxes (CBDT) said in a statement.