04 December 2012
Dear Experts, Pls Let me Know, whether Medical Reimbursement i.e. annual payment to employee can be paid monthly, I mean to say suppose 15000 per annum medical reimbursement is payable That is Included in CTC, Now 1250/- per Month Can Employer Pay to Employee, After That Whatever be the Medical bill employee Present at year end, That he can claim in tax deduction while generating form 16.
There is annual limit of Rs. 15000/- you can pay on accrual basis pr-rata to emplyee per month.
If you pay month on month basis & going to collect proofs at the year end only problem will be when emplyee is absconding & fails to submit bills & resignes company will be in default for not deducting TDS & expenses will be disallowed.
Thanks//Vaibhav Revert for more clarity. Use thank button to convey your appreciation.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
04 December 2012
Thats Ok, If Employee Fails to Present Bills at Year End, Then TDS Will be Deducted at Year End, Thats OK.
Question is Can Employer Pay, Since Its a Annual Pay not Monthly, Till Now I Got Reply from Experts That Employer Cant pay.