Tax on Money Received for Medical Treatment

Tax queries 571 views 2 replies

Dear Experts! Please guide on the below query.

There was a person suffering from critical health issues which were required high medical expenses. His family approached Ketto Crowdfunding Platform for help. After few days, a good amount of donation was credited to the patient's wife's bank account directly from Ketto (as a donation). The amount was around 25lacs. Out of these, Rs. 5lacs were spent for medical treatment, but unfortunately, the patient died. Now for the unused money, Ketto did not take it back but instead asked the beneficiary to retain it. My question is; what will be the tax treatment for this entire donation money (Rs. 25lacs) on Wife (she is already on a 30% tax slab)?

 

Replies (2)

Government has allowed it to be tax free, provided it was for Covid treatment. For other medical treatment its taxable.

It is taxable under section 56(1)(vii) of income tax act if the amount crossed 50k under income from other sources


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