Tds on Reimbursement

This query is : Resolved

karan (Querist)
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17 March 2011 I have deducted Medical premium for an employee from his salary and paid to insurance company

now he has incurred some amount for medical exp and got the reimbursement from insurance company

But it was routed through company

my Que is should i deduct TDS when i pay to him the reimbursement received from insurance company

is that amount is liable for income tax

should this be added as his taxable income
since Medical exp reimb from company is excempt upto 15000/-
should this be consider as medical reimbursement

Neeraj Bansal CA

Neeraj Bansal CA (Expert)
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17 March 2011 NO THIS IS NOT A REVENUE RECEIPT

THIS IS A CAPITAL RECEIPT AND COMPANY IS NOT PAYING ANYTHING HIMSELF IT IS JUST A TRANSFER

NO NEED TO DEDUCT TDS

IF ANYHTING MORE TELL ME

NEERAJ BANSAL (CA)

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karan

karan (Querist)
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18 March 2011 Does a employee(individual) have to add this as income - as Medical expenses reimburse by company is given as excempt upto Rs. 15000/-

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