Tax benefit available only if death certificate mentions Covid, say experts

For exemption on Covid-19 payments, file revised return for FY 2021-22, updated return for earlier years

Now, family members of Covid-19 victims who received an ex-gratia payment from the deceased’s employer, or financial assistance from relatives, need to submit a form and provide specific evidence to get tax exemptions. According to amendments made to the Finance Act, 2022, such ex-gratia payment from the employer will not be treated as a perquisite under the Income-Tax (I-T) Act, 1961.
 
The new rule
 
This year’s Union Budget allowed tax exemption on the amount received by a person to spend on his own, or his family member’s, medical treatment for Covid-19. The Central Board of Direct Taxes (CBDT)