02 December 2011
Our company is having a policy of medical allowance to staffs subject to a certain limit on the basis of Basic pay and DA. Now we are planning to cover all staffs under a medical insurance policy. The premium will be recovered from the existing medical allowance given to staffs, and remit to insurance company by employer.
My doubt is whether 80D can be claimed by staffs in respect of medical insurance premium recovered from their medical allowance?
02 December 2011
If it is group mediclaim insurance policy the payment will be exempted from tax in hands of employee, but the group insurance policy generally in name of employer, so employee cannot take benefit of sec.80D