On account lockdown across nation and hardships faced by taxpayers in executing various compliances under the Income Tax Act (‘the Act’) CBDT eases the compliance burden of taxpayers by providing relaxations in respect of the following compliances vide Press Release & Circular No. 12 of 2021 dated 25th June 2021. It even announced ‘Exemptions’ for Covid-19 expenditure & ‘Ex Gratia’ received on death due to COVID-19. The details are as follows:
  • 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 FY 2019-20 and subsequent years.
  • Income-tax exemption to whole of ex-gratia payment received by family members, on death of a person, from the employer of such person.
  • Income-tax exemption up to INR 10 lakhs of ex-gratia payment received by family members, on death of a person, from a anyone other than employer of such person.

For detailed understanding, please refer Press Release dated 25th June 2021 and CBDT Circular 12 /2021 dated 25th June 2021)

https://pib.gov.in/PressReleasePage.aspx?PRID=1730355