Medical insurance by employer for staff

Tax queries 728 views 4 replies

CA Ramsai N

Fresher

594 Points Joined October 2011

Hai..

the employer has taken a Medical Insurance cover for the staff.

Please suggest the tax effects on employee and employer.

Is employee eligible to show this under 80D? please refer the sections.

Thanks in advance

Replies (4)

nani

student

190 Points Joined February 2013

test comment post in fourm

CA BHUMIT SHAH

Consultant

270 Points Joined December 2011

Employer will get deduction of mediclaim premium paid if it is not paid in cash and employee will not get deduction since he himself has not borne the premium and it may amount to double deduction from the view of revenue department

Guest

DEDUCTION U/S 80D MEDICLAIM POLICY (HEALTH POLICY) PREVENTIVE HEALTH CHECK UP is allowed only for Individual and HUF

As far as deduction under any other section, employee can not take deduction on the insurance premium paid by the employer. U/S 80C, for claiming the deduction of insurance premium, there is a pre condition that, it should be paid by the person who is taking the deduction.

But if the employer is recovering the same from the employee salary then yes the picture is somehow different, then it can be deemed as indirect payment by the employee and employee can take the deduction of such premium.