Centre exempts tax on expenses incurred for Covid-19 treatment

The Centre on Friday exempted tax on expenses incurred on Covid treatment of an employee — borne by employers or any another person — for FY20 and later.

This exemption is applicable to any amount paid by the employer, and limited to Rs 10 lakh if received from any other person, the finance ministry notified.

The move comes as a relief to hundreds of taxpayers affected by the pandemic.

The ministry said many taxpayers have received financial help from their employers and well-wishers for meeting expenses incurred on Covid treatment.

“In order to ensure no income tax liability on this account, it has been