Medical expense taxable in employee hand or not

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sonu gupta (Querist)
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12 March 2013 AN EMPLOYEE MET WITH AN ACCIDENT. THE TOTAL EXPENSE OF RS. 200000/-OF HOSPITAL BEAR BY COMPANY. NOW, WHETHER THIS RS.200000/-IS TAXABLE IN EMPLOYEE HAND OR NOT, IF NOT, UNDER WHICH SECTION IT IS EXEMPT.

Santosh Mishra

Santosh Mishra (Expert)
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12 March 2013 I am assuming accident has not taken place in premises of employer, employee was not on office duties and treatment has not been done in a govt hospital.

As per sec 17 perquisite includes “Any sum paid by the employer in respect of any obligation which would have been paid by the assessee.”

Hence, it is taxable in the hands of employee. In this case expenses paid by employer up to 15000 can be exempted from tax under sec 17 (2).

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