Good News: Centre Announces Tax Relief For COVID-Related Financial Assistance

New Delhi: The Union Ministry of Finance on Friday announced relief measures for income taxpayers who have been affected by COVID-19.

“Many taxpayers & their families have received financial help from employers & well-wishers for COVID-19 treatment or ex-gratia help following COVID-related deaths. To ensure that no income tax liability arises on this account, exemptions have been granted,” stated Finance Minister Nirmala Sitharaman.

“The announcement provides significant relief to the beneficiaries of COVID relief. Any financial assistance received by a taxpayer for COVID treatment will be totally tax exempt. Further financial assistance extended by an employer in the event of death of an employee due to COVID is totally exempt, assistance received from others is tax exempt up to Rs 10 lakh. These benefits are available for FY 2019-20 and beyond,” Times Now quoted Deloitte India partner Saraswathi Kasturirangan as saying.