Compensation to form part of salary

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Querist : Anonymous

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Querist : Anonymous (Querist)
10 December 2015 An employee of a company met with an accident so company decided to give him imprest. All employees also contributed a part of their salary. HE is getting medical allowance also.
Does this contribution from employees and staff will form part of his salary?

Company argued that it should not be taxable since its just a help from our side.

Please provide some views.

10 December 2015 Contribution from employees and staff will not form part of salary and it will be treated as gift exempted from tax if no individual contribution exceed Rs. 50,000.

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Querist : Anonymous

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10 December 2015 What about contribution from company(employer and employee relationship)?

10 December 2015 If treatment taken from approved hospital it is exempted otherwise exempted to the extent of Rs. 15,000.

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Querist : Anonymous

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10 December 2015 under which section?

10 December 2015 Section 17(2).............


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