Medical Reimbursement

This query is : Resolved

Life is a Race.....CA FINAL (Querist)
Follow

29 June 2009 Whether Medical Reimbursement made by employer company for it's director up to Rs.15000 is taxable to Director or not ?

Is there any change if Amount exceed Rs.15000 ?

And what is the treatment for the company?
Whether it is allowable or nor to company?

Is FBT will come into picture or not?

chetan soni

chetan soni (Expert)
Follow

29 June 2009 If company have bills for the same then it is not taxable in the hands of directors.

If the amount of reimbursement exceeds Rs. 15K then the amount exceeding Rs. 15K is taxable in the hands of director. We can pay any amount but the benefit will always be for 15K.

Also note FBT is there on the amount of reimbursement.