Can hospitalisation claim of a pensioner treated as a perk?

571 views 1 replies

I am a pensioner of NABARD. There is an optional Medical Assistance Scheme for retirees wherein a retiring officer can opt for receiving financial assistance against hospitalisation expenses during retirement subject to payment of one time upfront subscripttion of Rs.25000+.

Last year,I received reimbursement(part)against a hospitalisation bill of Rs 24000 (in a private hospital) on account of which, a sum of Rs.8825 was treated as a perquisite, added to my pension income and taxed.

Since the Scheme referred above is subject to an upfront compulsory subscripttion of a substantial amount as a pre-condition, (akin to onetime premium towards a Medi-Claim policy), I am not sure whether reimbursement under the Scheme can be treated as a Perquisite u/s 17(2) and taxed along with my  pension income. This according to one view, being a contractual obligation to its subscribers under the Scheme referred above.The attached publication is also silent about the taxable Perquisites for Pensioners.

Secondly,as per publication of February 2014 of Income Tax Department meant for employers (attached), “Perquisite” may be defined as any casual emolument or benefit attached to an office or position in addition to salary or wages.In that sense,whether a pensioner can be equated with an in-service employee in relation to arising of  Perquisite?

Since this year I had to incur a huge expenditure towards hospitalisation,I am anxious to know about the taxability of reimbursement of related claims.I therfoer request guidance before I approach the employer for not treating it as a perquisite.Regards,

Amin Rajwani


Attached File : 815326 1381943 tax salaried employees.pdf downloaded: 155 times
Replies (1)

It appears that this scheme is more or less like a medical reimbursement which is exempt in the hands of the salaried or pensioner upto Rs. 15,000/- p.a. and which is why the company has made the difference (should have been Rs. 9,000/-) as taxable perquisites.

 

Wait for more replies.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Related Topics
Loading
Company
ARTICLESHIP 28 June 2026
Article Assistant

Sharma Chetan And Company

Gurgaon

CA Inter

View Details
Company
12 June 2026
Accounts & Taxation Executive

Winshine Financial Services

Mumbai

CA Inter

View Details
Company
20 June 2026
Assistant Accounts Manager

Fintax Professionals

Gurgaon

CA Inter

View Details
Company
ARTICLESHIP 18 June 2026
Article Assistance

RB KESHRI & CO.

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 30 June 2026
Article Assistant or Paid Assistant

VIKAS VERMA & CO

New Delhi

Others

View Details
Company
ARTICLESHIP 08 July 2026
Articles

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
06 July 2026
C.A./CA Inter OR pursuing C.A./GST/Accounts/Audit/IT - Head

Arvindkumar Maniar & Co.

Rajkot

CA

View Details
Company
ARTICLESHIP 27 June 2026
CA Articled Trainee And Paid Assistant

SKAA & Associates

New Delhi

CA Inter

View Details