“In order to provide relief to the family members of such taxpayer, it has been decided to provide an income-tax exemption to ex-gratia payment received by family members of a person from the employer of such person or from another person on the death of the person on account of Covid-19 during FY 2019-20 and subsequent years.
The exemption shall be allowed without any limit for the amount received from the employer and the exemption shall be limited to ₹10 lakh in aggregate for the amount received from any other persons,” it added
COVID-19 health insurance A tax exemption of up to Rs.25,000 can be claimed under Section 80D against the premium paid for a health insurance policy. Health insurance policies bought to cover any Covid-19 related health expenses are also covered under this deduction.