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Tax Query

Parmod Agarwal (Assistant Manager) (394 Points)

22 April 2010

Dear All,

Our company has provided the Executive health chekup scheme for the employees in which all expenses are borne by

the company. My query is that whether it is taxable in the hand of employee or not?

Plz urgent reply.

Thanks

Parmod

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vishnupriya (CA Final) (1418 Points)
Replied 23 April 2010

Medical facility provided to an employee or any member of his family is not a taxable perquisite U/s 17(2) subject to conditions like if such facility is availed from-

1. any hospital maintained by employer

2. Reimbursement of any medical expenditure actually incurred by the employee for himself or his family :
In any hospital maintained or approved by the Government, any local authority; or For prescribed diseases or ailments in any hospital approved by the Chief Commissioner, or

Up to Rs. 15,000, actually incurred by the employee on medical (other than the treatment referred to above);

Conclusion: The medical facilities provided by the employer to employees is exempt upto a value of Rs.15000 in other than hospitals mentioned above. If the employee repays the amount to employer, the tax will not be attracted.