The Central Board of Direct Taxes (CBDT) as of late told new circumstances and a structure for guaranteeing exclusion against costs on Covid-19 treatment.
According to the notice dated 5 August 2022, you should present specific reports to your manager and a form to the income tax office to guarantee tax exclusion on cash got from a business or family members for Covid-19 treatment.
Last year, the Central Government reported that the cash got by people for Covid-19 treatment or ex-gratia got by relatives on death because of Covid-19 would be absolved from income tax. This was likewise advised in Budget 2022. This exclusion is viable from FY 2019020 onwards.
What the new notice says
According to the August 5 warning, workers who have gotten cash for treatment of Coronavirus ought to present the accompanying records to their boss:
- The COVID-19 positive report of the individual or his relative, or clinical report still up in the air to be COVID-19 positive through examinations in a clinic or an in-patient office by a treating doctor for an individual so conceded;
- all fundamental records of clinical conclusion or treatment of the individual or relative because of COVID-19 or sickness connected with COVID-19 experienced in no less than a half year the date not entirely set in stone as a COVID-19 positive.
- Documents backing subtleties of the all out consumption caused on the treatment of COVID-19 or ailment connected with COVID-19 of the individual or any relative.
- As per the notice, an assertion of any sum got for any consumption really caused by a person for his clinical treatment or treatment of any individual from his family, for any disease connected with COVID-19 for the reasons for condition (XII) of the principal stipulation to provision (X) of sub-segment (2) of segment 56 of the Income-tax Act, 1961 will be checked and outfitted in Form No. 1.
The Form No. 1 incorporates subtleties, for example,
- PAN
subtleties of analysis of being positive for COVID-19
aggregate sum got from any individual
Name, address and PAN of the individual from whom the sum has been gotten
Monetary year in which the sum has been gotten. - In case of death of an individual, the accompanying circumstances would apply for guaranteeing charge exclusion:
- The passing of the individual ought to be in the span of a half year from the date of testing positive or from the date of not entirely set in stone as a COVID-19 case, for which any amount of cash has been gotten by the individual from the family.
The relative of the singular should track the accompanying records: - The COVID-19 positive report of the individual, or clinical report still up in the air to be COVID-19 positive through examinations in a clinic or a long term office by a treating doctor
A clinical report or demise declaration gave by a clinical specialist or a Government common enrollment office, in which it is expressed that passing of the individual is connected with Covid sickness (COVID-19).
