Amount recd frm employer under group heatth insurance policy

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This query is : Resolved

Shankar (Querist)

08 April 2014 If employer purchased a Group Health insurance policy for his employees. and employees are entertaining the benefit. is any sum received by the employees taxable?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

08 April 2014 Insurance Company directly pays to Hospitals for the treatment given not taxable.

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Shankar

Shankar (Querist)

08 April 2014 Dear Seetharamanji,

No. Insurance co is paying to the company and company reimbursing to the employees. is it taxable in the hands of employee

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

08 April 2014 1)Hospital is maintained by Central or State Govt., Local authority or any other person approved by the Govt.: In this case any expenses incurred or reimbursed by the employer for any treatment will not be chargeable to tax. 2) If hospital is maintained by a person approved by Chief Commissioner having regard to the prescribed guidelines then for the treatment of diseases given in Rule 3A(2), expenses incurred or reimbursed by the employer will not be chargeable to tax.(The employee should attach with his return of Income a certificate from the hospital specifying the nature of diseases as well as amount of expenses.) 3) Hospital is maintained by any other person not specified above(i.e. Private Hospital): Expenses incurred or reimbursed by the employer for any treatment will not be chargeableto tax upto Rs. 15,000.00. Any amount over and above Rs. 15,000.00 will be chargeable to tax in the hands of employee.

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