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An assessee who is required to file a Return of Income for an Assessment Year under the provisions of Income Tax Act, if fails to do so till One Year from the end of the relevant Assessment Year, he shall be liable to a fixed penalty of Rs. 5,000/- being imposed by the Assessing Officer. CBDT has issued Notification dated 21.08.2008 through which services rendered by certain persons in relations to the sport activities has been notified as Professional Services for the purpose of Section 194J. An employee who as a part of his Salary package is eligible to receive Medical reimbursement, may claim it till Rs. 15,000/- p.a without paying any tax, subject to production of medical bills, since till Rs. 15,000 the Employer is required to pay Fringe Benefit Tax. However, any amount reimbursed above this limit shall be chargeable to tax in the hands of employee itself and not the employer.
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