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Gym membership reimbu.rsement

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Troy Manning

Marketing4all

21 Points Joined March 2025

Team,

Can employer claim 100% expenses for the reimbursement of gym membership provided to the employees?

FYI- the gym is not in the same premises where the employer office is located.

Replies (1)

Rama chary Rachakonda

Master in Accounts & high court Advocate

8996 Points Joined December 2011

As per the Income-tax Act, 1961, and the Rules thereunder, employers can claim reimbursement of expenses for gym memberships provided to employees, but there are certain conditions and limits to consider.

Allowability of Expenses: 1. *Section 17(2)(viii)*: The Income-tax Act allows employers to provide tax-free benefits to employees, including gym memberships, under Section 17(2)(viii).

2. *Rule 3(7)(iii)*: As per Rule 3(7)(iii) of the Income-tax Rules, 1962, the value of any benefit or amenity provided to employees, including gym memberships, is exempt from tax to the extent of ₹5,000 per year. Claiming 100% Expenses:

1. *Conditions*: To claim 100% expenses for reimbursement of gym memberships, the employer must ensure that the gym membership is provided to all employees and is not discriminatory.

2. *Documentation*: Maintain proper documentation, including invoices, receipts, and employee declarations, to support the reimbursement claims.

Location of the Gym: 1. *No Restriction*: There is no restriction on the location of the gym, as long as the employer provides the gym membership to employees and meets the conditions mentioned above.

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