Budget 2022: Income tax relief on Covid-19 treatment expenses and compensation
Budget 2022: Finance Minister also did not raise the standard deduction, which was widely anticipated
Much to the disappointment of the salaried class, Finance Minister Nirmala Sitharaman shied away from providing any income tax relief. She did not change the personal income tax rates in the Budget 2022-23.
The minister also did not raise the standard deduction, which was widely anticipated in view of elevated inflation levels and the impact of the pandemic on the middle class.
However, relief has been provided to persons who have received money for expenses incurred on treatment of Covid 19.
“The budget does not have much to offer on personal tax. However relief has been provided to persons who have received money for expenses incurred on treatment of Covid 19. Likewise money received by family members on death of a person will be exempt upto 10 lakhs for family members,” said tax expert Balwant Jain.
According to Budget Paper 2022, “In section 56 of the Income-tax Act, in sub-section (2),––(a) in clause (viib), in the Explanation, in clause (aa), after the words and figures “Securities and Exchange Board of India Act, 1992”, the words and figures “or regulated under the International Financial Services Centres Authority Act, 2019” shall be inserted with effect from the 1st day of April,2023; 15 of 1992. 50 of 2019. (b) in clause (x),––(i) in the proviso occurring after item (B) in sub clause (c), after clause (XI) and before the Explanation, the following clauses shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2020, namely:––‘(XII) 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, for any illness related to COVID-19 subject to such conditions, as the Central Government may, by notification in the Official Gazette, specify in this behalf; (XIII) by a member of the family of a deceased person––(A) from the employer of the deceased person; or (B) from any other person or persons to the extent that such sum or aggregate of such sums does not exceed ten lakh rupees, where the cause of death of such person is illness related to COVID-19 and the payment is–– (i) received within twelve months from the date of death of such person; and (ii) subject to such other conditions, as the Central Government may, by notification in the Official Gazette, specify on this behalf.”
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Business NewsBudgetNewsBudget 2022: Income tax relief on Covid-19 treatment expenses and compensation
First Published:1 Feb 2022, 02:58 PM IST
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