No TDS on cash medical benefit provided to LIC employees

Life Insurance Corporation of India Vs ITO (ITAT Bangalore) Conclusion: Assesse was under a bonafide belief that cash medical benefit were only reimbursement of the expenditure incurred by the employees, and as such they could not form part of their income, therefore,  no tax could be recovered from the employer on account of short deduction of tax at source under section 192(1), if a bona fide estimate of salary taxable in the hands of the employee was made by the employer. Held: In present appeals, medical reimbursement was paid by assessee to its employee for medical treatment of the empl...