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Company is giving Covid 19 expenses Reimbursements to employees, is it Taxable amount to employees?

24 May 2021

Hi Sir,

Company is giving Covid 19 expenses Reimbursements to employees, is it Taxable amount to employees?
Please clarify my query.

Thanks
Srinivas

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5 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 24 May 2021

Yes it will be taxable

1 Like

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Sivaramaraju G (Learner) (2398 Points)
Replied 24 May 2021

It is a kind of allowance and govt did not give any information for it's exemption hence it will be taxable.

1 Like

Ankit Neema (2742 Points)
Replied 24 May 2021

It's taxable

1 Like

veerendar singh (tax consultant) (3301 Points)
Replied 24 May 2021

Is it a kind of medical aid or simply cash allowance?

ramdoss m (122 Points)
Replied 12 August 2021

Respiratory disease requiring surgical operations or medical treatment in a hospital for at least three continuous days shall be considered as prescribed diseases or ailment. Further, COVID-19 is a disease which affects respiratory system. Therefore, the COVID-19 disease which requires surgical operations or medical treatment in a hospital for at least three continuous days shall be eligible to claim as prescribed diseases or ailment. Therefore, reimbursement for the medical treatment of the employee or any member of his family in these cases shall not be treated as perquisite for the employee and we can claim exemption.