Please tell me whether FBT would be levied on Premium paid on group medical policy by employer.
CA Sanjeev
2 Replies
Ajay
(Profession)
(46 Points)
Replied 07 October 2007
Hi Sanjeev
As per Proviso to Sec.17(2), premium paid for Group medical policy is not taxable in the hands of both employer and employee. Therefore, fringe benefit is not levied on premium paid.
MAHENDRA IYER
(SERVICE)
(315 Points)
Replied 08 October 2007
Question no. 68 and 70 of CBDT's circular no. 8/2005 dt 29.08.05, twds FBT on payment made by employer for Group Personal accident/workman compensation and Group Health/Medical and Life insurance states that FBT will be leviable on the same as it is covered under the scope of section 115WB(2)(E). However if such expenditure is a statutory obligation, the same would not be liable to FBT.
Recent Topics
- DRC-01 Demand Notice for filing GSTR-9 Wrongly
- Income Tax for freelancing services
- Income Tax Return Filing Reg
- DRC 03 payment method
- GST Registration for Service Providers
- Tax for individual freelancing service providers
- LUT Number confusion! ARN or Reference Number
- Section 44ADA Query - 75 Lakh Limit Clarification
- GST on Rent RCM
- Clarification on GST Credit Note Rejection and Ret
Related Threads
CAclubindia
