The Central Board of Direct Taxes (CBDT) has asked the family members /Employees who received ex-gratia from an employer or any other financial help from relatives to submit “Form A “within due date.
If this form is not submitted, then the family member/Employee cannot claim income tax exemption on the money received due to the death of the individual by covid-19.
Condition for claiming Exemption
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/Employee.
Due Date for Submission
Form A must be submitted within 9 months from the end of the financial year in which money is received or December 31, 2022, whichever is later.
Hence, if you have received the money in FY 2020-21 (which ended on March 31, 2021), then you have to submit the ‘Form-A’ by December 31, 2022 deadline.
Upto Which Amount Exemption Allowed
The income tax exemption is available without any limit for the amount received from the employer. The amount received from any other relatives and well-wishers shall be exempted up to Rs 10 lakh only.
The income tax exemption for the limit of up to Rs 10 lakh is inclusive of money received for meeting the cost of treatment of covid-19 and for financial assistance to the family member of the deceased.
Documents to Kept Ready for Submission/ Future Records
(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 inpatient facility by a treating physician;
(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).
(iii) Statement of any amount 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.
(iv) All necessary documents of medical diagnosis or treatment of the individual or family member due to COVID-19 or illness related to COVID-19 suffered within six months from the date of being determined as a COVID-19 positive;
What documents Employee have to submit for not treating the amount received as PERQUISITE to His/Her 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) 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
(iii) 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
This notification 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
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