Income Tax Deduction for Expenses on Covid-19 Treatment: CBDT Notifies Conditions and Form [Read Notification]

Income Tax Deduction - Expenses - Covid-19 Treatment - CBDT - taxscan

The Central Board of Direct Taxes (CBDT) has notified the conditions and for availing income tax deduction for the expenses incurred on covid-19 treatment.

The Finance Bill, 2022 has provided for Separate income tax deduction for Covid-19 treatment.

Clause (x) of sub-section (2) of section 56 of the Income-tax Act, 1961 (the Act) inter alia, provides that where any person receives, in any previous year, from any person or persons any sum of money, without consideration, the aggregate value of which exceeds fifty thousand rupees, the whole of the aggregate value of such sum shall be the income of the person receiving such sum. However, certain exceptions have been provided in the clause for transactions specified therein. Clause (2) of section 17 of the Act, inter alia, provides the definition of “perquisite”. However, certain exceptions have been provided which shall not include as perquisites.

As per the notification issued on Monday, the deduction is allowable if, the death of the individual should be within six months from the date of testing positive or from the date of being clinically determined as a COVID-19 case, for which any sum of money has been received by the member of the family, and the family member of the individual shall keep a record of the following documents, – (a) the COVID-19 positive report of the individual, or medical report if clinically determined to be COVID-19 positive through investigations in a hospital or an inpatient facility by a treating physician; (b) a medical report or death certificate issued by a medical practitioner or a Government civil registration office, in which it is stated that death of the person is related 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,” the Notification said

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Notification No. 92/ 2022/ F

Date of Judgement:   AUGUST 5, 2022

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