Medical facility given to employee

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sushil (Querist)
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15 July 2011 Dear Experts,

Our company has given medical facity of rs 15000/- p.a. to certain employees for f.y.10-11. However such employees has not incurred any expenditures on medical expenses during the f.y. 10-11.

What will be tax treatment in their personal computation of income tax?

Whether it will be taxable?
Waiting for reply...
Thanks in advance.

Sushil.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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15 July 2011 It will be taxable only if the employee has been given Rs 15000/ in cash/cheque for spending and they have not submitted the medicine bills to the company. It will be shown as a taxable allowance.

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It will not be taxable merely on account of provision of a Facility for the employee.
If the employee has not taken any money from the company, he can not be taxed for
the facility, not availed by him
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