Retirement benefits

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 October 2011 A company has a policy to give retirement benefits to its employees till 5 yrs. of their retirement.

Mr. X is retired and after 2 yrs., the company reimburses Rs.6Lacs for his medicle treatment.

what is the tax treatment for the company as well as for the employee.
Is there any TDS liability regarding the same?

Prakash Tolani

Prakash Tolani (Expert)
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02 October 2011 it is taxable subject to

If treatment is done in any hospital

run by employer

run by govt.

in any approved hospital for specified desease

then it is taxfree otherwise taxable.