During Budget Speech of 2022, Finance Minister had announced that the money received by individuals for Covid-19 treatment or ex-gratia received by family members on death due to Covid-19 would be exempt from income tax. This was subsequently incorporated in Finance Act 2022 is effective from FY 2019-20 onwards. Further, the Central Board of Direct Taxes (CBDT) has recently notified new conditions as well as forms for claiming exemption against expenses on Covid-19 treatment.
CBDT has on August 5, 2022 issued 3 notifications listing out conditions and documentation required for claiming the amounts as exempt, details of which are as below
| Notification No. | Situation | Exempt under | Conditions to be satisfied | Details to be furnished |
| 90/2022 | Amounts received by employee to from employer | First proviso to Section 17(2)(ii)(c) | Details to be furnished to employer | Documents to be furnished to employer
(i) the COVID-19 positive report of the employee or family member, or medical report if clinically determined to be COVID-19 positive through investigations, in a hospital or an in-patient facility by a treating physician of a person so admitted; (ii) all necessary documents of medical diagnosis or treatment of the employee or his family member for COVID-19 or illness related to COVID-19 suffered within six months from the date of being determined as COVID-19 positive; and (iii) a certification in respect of all expenditure incurred on the treatment of COVID-19 or illness related to COVID-19 of the employee or of any member of his family |
| 91/2022 | Amounts received by an individual from any person (other than employer) | first proviso of 56(2)(x)(XII) | Form No. 1 to be furnished to Assessing Officer, year wise, within 9 months from the end of the financial year OR on or before 31/12/2022 whichever is later. | Documents to be maintained by the individual
(i) the COVID-19 positive report of the individual or family member, or medical report if clinically determined to be COVID-19 positive through investigations, in a hospital or an in-patient facility by a treating physician of a person so admitted; (ii) all necessary documents of medical diagnosis or treatment of the individual or his family member for COVID-19 or illness related to COVID-19 suffered within six months from the date of being determined as COVID-19 positive; and a certification in respect of all expenditure incurred on the treatment of COVID-19 or illness related to COVID-19 of the employee or of any member of his family Statement to be prepared by the individual List of amounts received for any expenditure actually incurred by an individual for his medical treatment or treatment of any member of his family, for any illness related to COVID-19 Form to be furnished to the Assessing Officer Form NO. 1 together with the declaration (as prescribed in Notification No. 91/2022) |
| 92/2022 | Amounts received by a member of the family of the deceased person either from employer or from any person (other than employer) | first proviso of 56(2)(x)(XIII) | Form No. A to be furnished to Assessing Officer, year wise, within 9 months from the end of the financial year OR on or before 31/12/2022 whichever is later |
Conditions to be satisfied 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 Documents to be maintained by the family member of the deceased person (i) 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 in-patient facility by a treating physician of a person so admitted; (ii) 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 to be prepared by the family member of the deceased person List of amounts received by a member of the family of a deceased person on account of death due to COVID-19 from: (b)from any other person or persons, Form to be furnished to the Assessing Officer Form NO. A together with the declaration (as prescribed in the Notification no. 92/2022) |
The aforementioned notifications shall be deemed to have come into force from the 1st day of April, 2020 and shall apply in relation to the assessment year 2020-2021 and subsequent assessment years.
Relevant Notifications:
| Title | Notification No. | Date |
| CBDT notifies conditions for exemption to money received from employer or other person in Covid cases by family of deceased | Notification No. 92/2022-Income Tax, [S.O. 3705(E).] | 05/08/2022 |
| Amount received for Covid-19 Treatment from any person- CBDT notifies conditions & Forms | Notification No. 91/2022-Income Tax [S.O. 3704(E).] | 05/08/2022 |
| Document to be submitted by employee to claim exemption on sum received for COVID-19 treatment | Notification No. 90/2022-Income Tax, [S.O. 3703(E).] | 05/08/2022 |
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