An employee was admitted to the hospital for surgery with prior approval from the Organisation. As per norm, he is eligible for 100% hospital charges related to surgery excl food etc. After the surgery, the Organisation paid the Hospital its charges and recovered other amount from the employee. My question is: 1. Whether excess in amount of Rs.15000/- need to be added as Perks in employees' IT calcuations? 2. What if the Hospital is exempted from TDS by IT auhtorities? 3. Wether IT authorities can waive Tax in the hands of Employees at select hospitals (private or govt) where TDS exempted?
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IT on excess medical
Replies (3)
Hi..
Medical expenses paid by the employer upto 15000 is exempt and amount over and above is taxable in the hands of the employees.
In case the medical facility is provided in the hopital which is maintained by the employer then the whole expenditure is exempt.
In case the medical facility is provided in the hospital which is recognised by the govt. then also the whole expenditure is exempt.
An employee was admitted to the hospital for surgery with prior approval from the Organisation. As per norm, he is eligible for 100% hospital charges related to surgery excl food etc. After the surgery, the Organisation paid the Hospital its charges and recovered other amount from the employee. My question is:
1. Whether amount in excess of Rs.15000/- need to be added as Perks in employees IT?
2. What if the Hospital is exempted from TDS?
3. Whether the IT department can waive Tax in the hands of employee for selective hospitals where TDS is exempted when they go hospitalisation?
Thanks Mr Varun Soni.
In this case, the hospital is a privately owned.
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