<h1>Income Tax Exemption Announced for COVID-19 Medical Treatment and Ex-Gratia Payments; No Increase in Cash Transaction Limits.</h1> The government has announced an income tax exemption for amounts received by taxpayers for COVID-19 medical treatment from employers or any person during the financial year 2019-20 and subsequent years. This exemption aims to alleviate the financial burden on taxpayers affected by COVID-19. Additionally, ex-gratia payments received by family members of deceased individuals due to COVID-19 are also exempt from income tax, with no limit for amounts from employers and a Rs. 10 lakh cap from others. The government is not increasing cash transaction limits under the Income-tax Act, 1961, and has extended key tax compliance deadlines due to the pandemic.