Tax Treatment for Covid Related Expenses

  • 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.

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