shinehny (practice) (28 Points)
24 December 2012"The director's son got hospitalized in a foreign country. The hospital medical expenses were paid by the company. Can the company claim this expense under Income Tax Act?
Gururaj V Megharaj
(IPCC)
(70 Points)
Replied 24 December 2012
No. It cannot be allowed as expense to the company.
shinehny
(practice)
(28 Points)
Replied 24 December 2012
Please explain in detail if it is not allowed
Anil Kumar Gattani
(Article)
(61 Points)
Replied 24 December 2012
No the expense borne by company will be disallowed bcz it's not a business expense & hence is not allowable
Dhanya Sreedhar
(CA final, doing Job)
(661 Points)
Replied 24 December 2012
Any expenses to be allowed only if such expenses has any nexus with the business activities...here the expenses incurred is not in connection with the business hence not allowed
deepali agarwal
(Company Secretary)
(1289 Points)
Replied 25 December 2012
Such expenses will be shown in the name of drawings by the Director and cannot be claimed as business expense...
kavitha
(studying final)
(830 Points)
Replied 26 December 2012
completely agree with Dhanya sreedhar
Anjani Kumar
(Manager)
(128 Points)
Replied 29 December 2012
Completely agree with All
As per my knowledge you can show it as a salary ( You have to Apply PERQ rules Sec17(3) - Medical Expenses boarn by company to its employee) drawn by Director, You can apply that rules and If you convert this MEDICAL expenses to SEC17(3) your company can claim as expenses as Director Remuneration subject to TDS deduction to him
Friends If i am wrong please Correct me.
Amit Gupta
(Account )
(67 Points)
Replied 12 January 2013
you will be get the claim when son of Director have any relation with company (means if he part of company)
Nikhil Kaushik
(Fellow CA)
(85287 Points)
Replied 12 January 2013
I believe Anjani is correct subject to proper documentation and TDS compliance (Section 192b)
CAclubindia
