Taxpayer is an existing employee of an NGO. Taxpayer was suffering from Covid-19. NGO has provided him/her a Financial Assistance under the head ‘Ex-gratia’ of Salary during the F.Y.2020-2021.
Press release by CBDT dated 25-Jun-2021
It is mentioned in the above-mentioned press release that,
A.
I.
(Point A – I)
Many taxpayers have received financial help from their employers and well-wishers for meeting expenses incurred for treatment of covid-19. In order to ensure that no income tax liability arises on this account, it has been decided to provide income-tax exemption to the amount received by a taxpayer for medical treatment from employer...for treatment of covid-19 during FY 2019-20 and subsequent years.
Necessary legislative amendments for the above decisions shall be proposed in due course of time.
We are not able to find any circular / notification which clearly states;
- an amount an existing employee can claim as tax exemption
- maximum amount limit for an existing (alive) employee
- and under which section it is to be claimed as tax exemption
Experts please advise.
CAclubindia
