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Will families pay Income Tax on money received from employer or others after Covid death? Check new rule

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The Central Authorities on Friday (June 25) introduced tax aid for households of those that have misplaced their lives as a result of Covid-19 since FY 2019-20. The Authorities has determined to offer earnings tax exemption on any quantity acquired by the household of an worker from the employer. Additionally, exemption as much as Rs 10 lakh has been supplied for any quantity acquired from every other individual aside from the employer.

The Ministry of Finance stated in a press release, “Sadly, sure taxpayers have misplaced their life as a result of Covid-19. Employers and well-wishers of such taxpayers had prolonged monetary help to their relations in order that they might deal with the difficulties arisen because of the sudden lack of the incomes member of their household.”

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The Ministry additional stated, “To be able to present aid to the relations of such taxpayer, it has been determined to offer income-tax exemption to ex-gratia fee acquired by relations of an individual from the employer of such individual or from different individual on the loss of life of the individual on account of Covid-19 throughout FY 2019-20 and subsequent years.”

In line with the official assertion of the Ministry, the exemption might be “allowed with none restrict for the quantity acquired from the employer” and “the exemption shall be restricted to Rs. 10 lakh in mixture for the quantity acquired from every other individuals.”

ALSO READ | Good news for homebuyers! You can now invest in a house and claim tax exemption till September 30

No tax on monetary assist for Covid remedy

Tax aid has additionally been supplied on any quantity acquired by an worker from the employer or any well-wisher for remedy of Covid-19.

“Many taxpayers have acquired monetary assist from their employers and well-wishers for assembly their bills incurred for remedy of Covid-19. To be able to make sure that no earnings tax legal responsibility arises on this account, it has been determined to offer income-tax exemption to the quantity acquired by a taxpayer for medical remedy from employer or from any individual for remedy of Covid-19 throughout FY 2019-20 and subsequent years,” the Ministry stated.

The Authorities will quickly notify required rule modifications to present impact to the above choices.

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