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Deduction to company for staff medeclaim paid

vinayak c. chavan (CPT passed) (1011 Points)

08 March 2018

We are private limited company in mumbai. We are planning to take medeclaim for our employees. How it wil be benebecial this for our compnay in terms of tax deduction. Will we get deduction for makin gpayment of staff mediclaim premuim if we make payment of premuim from comapny account. also can we take GST input credit agaist the said premuim.

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Srinivas Pyata (543 Points)
Replied 08 March 2018

As Per section 36(1)(ib) It is allowed
The section is as follows

36(1)[ib] the amount of any premium paid by any mode of payment other than cash by the assessee as an employer to effect or to keep in force an insurance on the health of his employees under a scheme framed in this behalf by—

[A] the General Insurance Corporation of India formed under section 9 of the General Insurance Business [Nationalisation] Act, 1972 [57 of 1972] and approved by the Central Government; or

[B] any other insurer and approved by the Insurance Regulatory and Development Authority established under sub-section [1] of section 3 of the Insurance Regulatory and Development Authority Act, 1999 [41 of 1999];