Medical reimbursement

Tax queries 613 views 2 replies

Parmod Agarwal

Assistant Manager

394 Points Joined January 2010

Dear All,

Happy New year ,2014.

We are paying Medical Benefits 8% of Basic pay on Quarterly basis transfer on A/c without obtaining any medical Bill from the Employees having Basic Salary Rs. 8500/- Per Month. Above Basic Rs. 8500/- Per Month

we are obtaining medical Bill upto Rs. 15000/- Per annum. My query is that whether this medical Benefit is Perks or Allowance.Please advice.

Thanks and regards

Parmod

Replies (2)

@VaibhavJ

Believe!! Live your dreams!

33521 Points Joined November 2008

If Bills are not collected then it is taxable perk else non taxable reimbursement.

Your cos. logic is simple, since employees having basic salary upto Rs. 8500 will be alwayz out of salary bracket so why to collect bills from them!!

Thanks

Guest

sir, medical facility or expenditure reimbursements from employer to employee is regarded as allowance and is subject to a maximum of Rs.15000 only. it is not treated as a perquisite in the hands of employee.

perquisite includes sum paid /payable by the employer on behalf of the employees for any obligation payable by the employee

it is from my knowledge if any mistakes in it sorry because iam studying.