Medial Re-imbursement over Rs. 15,000
This query is : Resolved
14 March 2008
Hello All members of CAClubIndia,
The question is on taxability of medical re-imbursement claims in the hands of Employee.
If employee claims the medical re-imbursement over and above of Rs. 15,000, say 16,000 in a particular financial year ,what will be the correct amount liable to Income Tax for Employee ?
Is it the whole amount claimed i.e. Rs. 16,000 or only the excess amount of Rs. 1000 ?
Beacuse I read different views. One is saying only Rs. 1000 and other saying whole Rs. 16,000 will get taxable in the hands of employee.
I have deducted the TDS for one of our employee by taxing the whole claim of Rs. 16,000. If it is wrong how shall I rectify it before the close of this F.Y. ?
Please Advise.......
Thanks and Best Regards,
Amit
The question is on taxability of medical re-imbursement claims in the hands of Employee.
If employee claims the medical re-imbursement over and above of Rs. 15,000, say 16,000 in a particular financial year ,what will be the correct amount liable to Income Tax for Employee ?
Is it the whole amount claimed i.e. Rs. 16,000 or only the excess amount of Rs. 1000 ?
Beacuse I read different views. One is saying only Rs. 1000 and other saying whole Rs. 16,000 will get taxable in the hands of employee.
I have deducted the TDS for one of our employee by taxing the whole claim of Rs. 16,000. If it is wrong how shall I rectify it before the close of this F.Y. ?
Please Advise.......
Thanks and Best Regards,
Amit
14 March 2008
its wrong. He can claim the basic exemption of Rs 15000
15 March 2008
THE BASIC EXEMPTION LIMIT IS 15000/-,THEREFORE IN EXCESS OF 15000/- SHALL BE TAXABLE
15 March 2008
Dear Experts,
Thanks for your valuable comments.
Now how can I rectify this excess deduction of TDS ?
Is there any alternate way to pay back the excess deduction to employee ?
What about the first 15,000.. Is it liable to FBT ?
Thanks
Amit
In my opinion only alternate way available to employee is to claim for REFUND in his annual return.
Thanks for your valuable comments.
Now how can I rectify this excess deduction of TDS ?
Is there any alternate way to pay back the excess deduction to employee ?
What about the first 15,000.. Is it liable to FBT ?
Thanks
Amit
In my opinion only alternate way available to employee is to claim for REFUND in his annual return.
15 March 2008
YES FIRST 15000/- IS LIABLE TO FBT
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