Dear all,
Can anyone of you explain the following 2 questions based on the article given below -:
1) if medical health checkup is not taxable in the hands of employee, then in that case, it is taxable in the hands of employer.
2) if the amount being taken out from the ctc of the employee then, while computing the tax, whether it will be added to the income and exemption simultaneously.
In a major relief to employees, the Government has said they would no longer have to pay income tax on money drawn from welfare funds for annual medical check-ups. The Central Board of Direct Taxes ( CBDT )) has issued a notification in this regard. As per the notification, no income tax will be levied “to meet the cost of annual medical tests or medical check-ups of the member, his spouse and dependent children” if money is drawn from the welfare fund to meet the expenses.
Earlier, only cash benefits to a member of the welfare fund on superannuation, illness (including spouse or dependent children), or towards education of dependent children were exempted from income tax.
Exemption from taxation is granted under section 10 of the Income Tax Act. The latest exemption has been given under a clause that deals with income received on behalf of a fund established for the welfare of employees or their dependants.
Thanks for your support in advance .
Regards.
Sreedar.S
CAclubindia
