FICCI welcomes govt’s announcements to exempt tax on COVID medical treatment, ex-gratia payment on death

New Delhi: Commenting on the measures announced by the government to provide relief to the people on account of the hardship faced due to COVID-19, Mr Sanjiv Mehta, Senior Vice President, FICCI said, “We welcome these measures and thank the government for this timely announcement. In its submissions to the government, FICCI had requested that the amount paid for medical treatment of COVID-19 to an employee by an employer should not be taxed in the hands of the employee. The government has not only accepted this proposal but also extended this benefit to other beneficiaries who receive financial support from any other person for meeting expenses related to COVID-19 treatment. Likewise, ex-gratia payment paid on the death of an employee or any other person on account of COVID-19 will also be tax exempt. The financial burden on a large section of our society on account of COVID-19 has been huge and through the steps announced today, government has tried to lessen the impact.”

FICCI also welcomes other announcements made by the government including extension of the last date for PAN-Aadhar linkage by three months till 30th September 2021, extension of the payment deadline for ‘Vivad se Vishwas’ direct tax dispute resolution scheme and the relaxation in timeline offered to furnish TDS certificate. These and other related measures will offer relief to income taxpayers and improve the ease of income tax compliance.