CBDT notifies Form for claiming COVID-19 tax exemptions

Notification No. 91 & 92/2022, dated 05-08-2022

Section 56(2)(x), inter-alia, provides that where any person receives any sum of money, without consideration and the aggregate value of such sum exceeds Rs. 50,000, then the whole of the aggregate value of such sum shall be chargeable to tax under the head income from other sources.

However, certain exceptions have been provided in this respect under proviso to said section. The Finance Act, 2022 had inserted two new clauses, i.e., Clause (XII) and Clause (XIII) under the said proviso,

Clause (XII) provides that any sum of money received by an individual, from any person, in respect of any expenditure actually incurred by him on his medical treatment or treatment of any member of his family in respect of any illness related to COVID-19, shall not be considered as income of such person.

Clause (XIII) provides that where any sum of money received by family member of a person who died due to COVID-19, the money so received shall not be considered as income of the family member where such money is received from the employer of deceased person. If the money is received from any other person, the exemption amount shall be limited to Rs. 10 lakh in aggregate.

However, the benefit of both the clauses shall be allowed subject to certain conditions as may be notified by the Government on this behalf. The board has notified the following conditions in this regard:

1. For the purpose of Clause (XII)

An individual shall be required to keep a record of the following document:

a) The COVID-19 positive report of the individual or his 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 for a person so admitted; and
b) 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.

Such an individual shall be required to furnish a statement in Form No. 1 in respect of any amount received for any expenditure actually incurred by him for medical treatment or treatment of any member of his family for any illness related to COVID-19.

The statement in Form no. 1 shall be furnished to the Income-tax Dept. within 9 months from the end of such financial year or 31.12.2022, whichever is later.

2. For the purpose of Clause (XIII)
To claim the benefit of 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.

The family member of the individual shall keep a record of the following document:

a) 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 the death of the person is related to coronavirus disease (COVID-19).

Further, the family member of the individual shall be required to furnish a statement in Form No. A in respect of any sum of money received on death of such individual. Form No. A shall be furnished to Assessing Officer within 9 months from the end of such Financial Year or 31-12-2022 whichever is later.

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