Tax Treatment of Medical Reimbursements Paid by Employer to Employee

Tax Treatment of Medical Reimbursements Paid by Employer to Employee

Medical Reimbursements made by the employer to employee exceeding Rs. 15,000 p.a. are considered as perquisite and taxable u/s 17(2). Provisions relating to determination of value of perquisites have been explained in Section 17(2) and Rule 3.

Proviso (v) to Section 17(2)(viii) stipulates as under:

Any sum paid by the employer in respect of any expenditure actually incurred by the employee on his medical treatment or treatment of any member of his family other than the treatment referred to in Section 17(2)(i) and (ii); so, however, that such sum does not exceed fifteen thousand rupees in the previous year;

Leave a Reply

Get ‘CA Club Updates’ Newsletter via Daily Email

Subscribe for our Newsletter ‘CA Club Updates’ delivered thru Google Feedburner Emails and join our community of 6000 plus subscribers. To join, please click on the ‘SUBSCRIBE’ link below:

SUBSCRIBE

Upon clicking the link, a pop-up window will open. Please fill up your email id and verification code therein. After that check your email and click the confirmation link sent by Feedburner Email subscription.

This one time process is to ensure that you don’t get emails without your own confirmation, i.e. someone else can’t register your email here. Besides, each Newsletter will include an ‘Unsubscribe’ link to maintain your freedom to discontinue getting emails anytime.