Medical reimbursement

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This query is : Resolved

rajesh kelavkar (Querist)

26 April 2013 An employee meets with an accident during the course of his duty. He takes medical treatment treatment in a private hospital not approved by Government. The employer reimburses the medical expenses.Whether such reimbursement be treated as perquisite, in the hands of the employee, to be charged to Income Tax?

VISHRUT

VISHRUT (Expert)

26 April 2013 If the employee meet with an accident during course of its duty than same will be not be treated as perquisite in the hands of employee and expenses shall be allowed to the employer as legal staff medical expenses.

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V K Bajaj

V K Bajaj (Expert)

27 April 2013 Mr Vishrut you are exactly right.

rajesh kelavkar

rajesh kelavkar (Querist)

28 April 2013 Thanks a lot, sir. But can u please elaborate under which section or rule this is applicable so that there will be no problem during audit.

VISHRUT

VISHRUT (Expert)

29 April 2013 Dear Mr. Rajesh,

It is a valid business expenditure allowed under Section 37 of Income tax Act,1961 under the hear income from Business & Profession.

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