TDS Deduction

If mediclaim policy has been taken by the company. An accident occured and employee has spent all payment to Hospital.

The Company receive cheque from Insurance company and paid to employee after deducting TDS. Is it correct????????

 Please Email: rakes2004 @ gmail.com

Replies (3)

Dear Radhika,

Payment of mediclaim premium by employer on behalf of employee is a taxfree perquisite in the hands of employee....

Further, on amount received from Insurance co. & remiting it to employee who has incurred the hospital expenses will not attract TDS....Co. has no role to play on this, it simply acted as a mediator....TDS will not be deducted........... 

if company is deducting TDS, clarify under which sec. they are deducting TDS.........

 

It is not part of your salary. So, no TDS should be there as per me.

No TDS will come in to picture

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