COVID-19 relief up to ₹10 lakh for victims' families tax-free

Financial aid sought for treatment costs also exempt from income tax.

The government on Friday announced Income tax relief for COVID-19 affected taxpayers who had to rely on financial aid for their treatment costs and exempted ex-gratia payments of up to ₹10 lakh from employers and other well-wishers to the families of those who passed away. The tax relief measures have been granted retrospectively from the onset of the COVID-19 pandemic, though tax practitioners are not clear how tax returns already filed for 2019-20 can be revisited. “Unfortunately, certain taxpayers have lost their life due to COVID-19. Employers and well-wishers of such taxpayers had extended financial assistance to their family members so that they could cope with the difficulties arisen due to the sudden loss of the earning member of their family,” the Finance Ministry said in a statement.