Medical perk

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 September 2011 hiiiiii
i need some clarification whether the family definition of medical perk includes married daughter i.e any expenses reimbersed by the employer towards her treatment is taxable or tax free

regards

pavani

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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15 September 2011 Once a woman gets married she ceases to be member of her parent’s family. She becomes member of her husband’s family. Whether ceasing of relationship will end her status as daughter of her parents? No. She will continue to remain daughter of her father and mother forever. S. 2(41) embrace the case of lineal descendant also. Therefore, from the perspective of father, daughter is lineal descendant. Hence, she will continue to be relative with reference to her parents, irrespective of the fact whether she is married or not.

12.1 In the case of Manibhai Gaur V Controller of ED [1980] 122 ITR 652 MP, in a matter related to Estate Duty, it was contended by the I. Tax Department that married daughters were not “children” within the definition of “relatives” as contained in s. 27(7)(i)(b) of Estate Duty Act. The court did not find any merit in this contention. It was also observed that the word “children” has been used in a comprehensive sense as is clear from cl. (ii) of s. 27(7) which specifically says that the word “children” shall include illegitimate children and also adopted children. Unmarried and married daughters will both fall within the description of to “children” and will be covered by the definition of “relative” as given in s. 27(7)(i) of the Act.

12.2 Although these observations were in the context of the word “children” as defined under the Estate Duty Act, what is important is that it was interpreted in comprehensive sense. Applying the same analogy, one can say that married daughters are also relative within the meaning of S. 2(41).

Section 80DDB Explanation (i) defines the term dependant which is also referred in section 80D.
The word "mainly" used in this context has not been defined in the Income-tax Act, 1961.
The dictionary meaning of mainly is principally, primarily.
The Board had an occasion to consider the interpretation of the word "mainly" used in item 21 of the Ninth Schedule. Refer circular no.213 dated 14/3/1977 wherein the legal position was settled by stating that if activities (investment) is 51% or more than it is covered by the definition "mainly".