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Can hospitalisation claim of a pensioner treated as a perk?

Tax queries 569 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.

 

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