The Central Board of Direct Taxes (CBDT) has circulated the conditions to claim the income tax deduction for the expenses made on covid-19 treatment.
The Finance bill 2022 would furnish a separate income tax deduction for the treatment of Covid-19.
Clause (x) of sub-section (2) of section 56 of the Income-tax Act, 1961 (the Act) inter alia furnished that in which any individual obtains in any former year through any individual or persons any sum of money, excluding any consideration the aggregate value of which is more than Rs 50,000, the entire aggregate value of this addition will be the income of the individual obtaining the addition.
Thus some exceptions would be furnished in the clause to the mentioned transaction. Clause (2) of section 17 of the Act, inter alia, provides the definition of “perquisite” but some exceptions would be furnished that will not count as perquisites.
Under the issued notification, the deduction would be permitted when the death of the person must be within 6 months from the date of testing positive or from the date of being clinically counted as a case of covid-19, towards which any sum of the money would be obtained by the member of the family and the member of the family of the person will maintain the record of the mentioned documents (a) positive report of COVID-19 of the person or the medical report when clinically fetched to be covid-19 positive via investigations in a hospital (b) a medical report or death certificate given, medical practitioner or a Government civil registration office, specified that death of the person is corresponding to corona-virus disease (COVID-19).
“Statement of any sum of money received by a member of the family of a deceased person from the employer of the deceased person or from any other person or persons, on account of death due to COVID-19 for the purposes of clause (XIII) of the first proviso to clause (x) of subsection (2) of section 56 of the Income-tax Act, 1961 shall be verified and furnished in Form A,” specified in the Notification.
- CBDT Notification for Form Number A
- CBDT Notification for Form Number 1
- CBDT Notification for Conditions
