The company paid the mediclaim policy of the General Manager during the year. What would be the tax treatment :- in the hands of company , Can it be allowable exepenses. or in the hands of General Manager , can he allowable to take deduction of 80 D.
Accourding to my openion, in the hands of company, this payment is allowable exepenses as perquisites to employee. In the hand of General Manager, this payment is added to his salary and shall not able to take the benifit of deduction u/s 80D because he (general manager) is not the payer of his on account by any mode other than cash.
Please suggest me whether i m right or not
CAclubindia
