Tax Treatment for Covid Related Expenses

Quicko File
1

  • If you are a salaried person and your employer has reimbursed the medical expenses incurred for you as well as for your dependent relatives and employer has deducted TDS on the reimbursement amount, You can claim the refund of the TDS deducted by employer by claiming the reimbursement expense as exempt allowance. You can add amount under “Allowances to the extent exempt u/s 10” as Any Other, Nature of Exempt Allowance as Any other and Description (COVID-19 Press release dated 25.06.2021)

  • If you are non-salaried person (or even a salaried person receiving amount from any person other than employer) the amount received from anyone up to INR 10 lacs is exempt from tax.

Have got any questions related to this? Ask away!

2

Whether if the person is non-salaried and paid all expences out of his pocket without mediclaim, is he eligible for any exemtion from tax ?

3

Hey @BP_Stock_Advisory,

If an individual is a senior citizen or their parents are senior citizen and the individual has paid for medical bills then you can claim the deduction for such medical expenses up to INR 50,000/- u/s. 80D.

Hope this helps!