Tax effect on payment to hospital for treatment of director

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 December 2011 The crux of problem is "Tax effect on payment to hospital for treatment of Director of a closely held limited company".

The Detailed problem is that an director of a limited company has undergone an operation in a private hospital and company has paid the bill of behalf on the director directly to the hospital.

Now what will be the tax effect of the transaction.

Thanks in advance

Guest

Guest (Expert)

14 December 2011 It is disallowed expenditure under IT Act, 1961. Since payment is made for personal expenses of director which is not directly related to the business of company.

Querist : Anonymous

Querist : Anonymous (Querist)

15 December 2011 Thanks Neha

But can't it be claimed as medical expenses reimbursed to an employee of the company, where the company dose not provide for ESI as not mandatory instead medical expenses actually incurred are reimbursed.

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Guest

Guest (Expert)

15 December 2011 No, it can not be claimed as medical expenses.

Querist : Anonymous

Querist : Anonymous (Querist)

15 December 2011 And if the company treat it as a part of salary of the director, then