Company is allowing reimbursement on purchase of oximeter and Covid vaccination.
should we treat this as perks ? and tax in hands of employee or should the tax as to borne by employer?
Thanks in advance
Replies (4)
Quick Summary
This discussion explores whether company reimbursements for oximeters and COVID-19 vaccinations should be treated as taxable perks for employees or if the employer should bear the tax. Opinions suggest these are taxable allowances or perquisites in the employee's hands, though the employer can claim them as employee welfare expenses. The thread also touches upon the distinctions between perks, profit in lieu of salary, allowances, and reimbursements.
I think it will be allowance for employee. and it is taxable. and it is allowance and taxable in the hands of employee hence employer can take deduction as employee welfare expenses.