Regarding the taxability of the Canada emergency student benefit (CESB) received by a First Nation individual, CRA indicated that it could not be exempted under s. 87 as it “is not considered to be situated on a reserve as there are insufficient factors connecting this income to a reserve” (even if the “the recipient is a First Nation individual residing on a reserve”) and it instead “is available to all Canadians who qualify and [is] paid from general government funds.”
The CESB is not exempt from tax under s. 87, it should not be included on line 7 of Form T90.