Medical reimbursement bill exempt fromIncome Tax.By Shankar Bose, Inspector of Income-tax, MSTU, PuriOn medical reimbursem...
Medical reimbursment bill exempted)
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Medical reimbursment bill exempted)

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Transcript of "Medical reimbursment bill exempted)"

  1. 1. Medical reimbursement bill exempt fromIncome Tax.By Shankar Bose, Inspector of Income-tax, MSTU, PuriOn medical reimbursement Bill paid to employee byGovernment/Statement for their annual medical check-ups or majorinjury medical bills, the Government has said they would no longerhave to pay income tax on money drawn from welfare funds forannual medical check-ups. The Central Board of Direct Taxes ( CBDT ))has issued a notification in this regard. As per the notification, noincome tax will be levied “to meet the cost of annual medical tests ormedical check-ups of the member, his spouse and dependentchildren” if money is drawn from the welfare fund to meet theexpenses.Earlier, only cash benefits to a member of the welfare fund onsuperannuation, illness (including spouse or dependent children), ortowards education of dependent children were exempted fromincome tax.Exemption from taxation is granted under section 10 of the IncomeTax Act. The latest exemption has been given under a clause thatdeals with income received on behalf of a fund established for thewelfare of employees or their dependents.Also, earlier this year, the government had withdrawn a proposal toimpose 5 per cent service tax on services provided by air conditionedhospitals of more than 25 beds and on diagnostic services.Thanks

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