CBDT Notifies Conditions For Income Tax Deduction For Expenditure On COVID Treatment

The 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.

The Board has notified that the income tax deduction can be claimed on the condition that the death of the individual should be within 6 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 individual's family member must keep a record of the various documents in order to claim the income tax deduction. The documents include 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 in-patient facility by a treating physician. Furthermore, 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, must be kept.

"Statement of any sum of money received by a member of the family of a deceased person from the employer of the deceased person or from any other person or persons, on account of the death due to COVID-19 for the purposes of clause (XIII) of the first proviso to clause (x) of sub-section (2) of section 56 of the Income-tax Act, 1961, shall be verified and furnished in Form A," the CBDT said.

The details of the amount received in any financial year shall be furnished on Form A to the Assessing Officer within nine months from the end of financial year or 31.12.2022, whichever is later.

Notification: 92/2022

Dated: 05.08.2022

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