perquisites in the hands of employee

This query is : Resolved

yogesh vijaykumar shah (Querist)
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26 December 2010 Supoose the company spends money on medical expenses for employee's family members for diagnosis of seriouse decease,whether it is taxable in the hands of employee as perquisites. Also whether the same may be claimed as deduction in the books of compnay for spending the medical expenses. Please advise me.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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26 December 2010 Expenditure incurred by the Company for providing medical facilities to its employees and dependents will be an exempted perquisite provided the treatment is carried on by hospitals maintained by Government or
Municipal Corporations.

If treatment is carried out through hospitals approved by Chief Commissioner for certain prescribed diseases then also it will be exempt.

In case of treatment in private hospitals, -the perquisite will be not taxable upto Rs 15000/-

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