Which of the following statements is/are correct with reference to the tax reliefs?
A. No tax on ex-gratia payment received on account of the family member of the deceased employee due to Covid.
B. Financial help received from relatives and friends will also not attract any tax till the total amount reaches Rs 10 lakh.
C. Both A & B
D. None of these
Explanation:
The Government of India recently announced tax exemptions to encourage employers and members of the public for assisting those people with COVID-19 treatment expenses and also those who have lost their families to the virus. No tax on ex-gratia payment received on account of the family member of the deceased employee due to Covid. Financial help received from relatives and friends will also not attract any tax till the total amount reaches Rs 10 lakh.
