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Medical reimbursement

Tax queries 695 views 2 replies

Dear All,

Happy New year ,2014.

We are paying Medical Benefits 8% of Basic pay on Quarterly basis transfer on A/c  without obtaining any medical Bill from the Employees having Basic Salary Rs. 8500/- Per Month. Above  Basic Rs. 8500/- Per Month 

we are obtaining medical Bill upto Rs. 15000/- Per annum.  My query is that whether this medical Benefit is Perks or Allowance.Please advice.

Thanks and regards

Parmod 

 

 

 

Replies (2)

Hi

 

If Bills are not collected then it is taxable perk else non taxable reimbursement.

 

Your cos. logic is simple, since employees having basic salary upto Rs. 8500 will be alwayz out of salary bracket so why to collect bills from them!!

 

Thanks

sir, medical facility or expenditure reimbursements from employer to employee is regarded as allowance and is subject to a maximum of Rs.15000 only. it is not treated as a perquisite in the hands of employee.

perquisite includes sum paid /payable by the employer on behalf of the employees for any obligation payable by the employee

       it is from my knowledge if any mistakes in it sorry because iam studying.


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