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Case Law Details

Case Name : The Assistant Commissioner of Income Tax (TDS) Vs M/s. SAP Labs India Pvt. Ltd. (ITAT Bangalore)
Related Assessment Year : 2008- 09 to 2010- 11
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Non deduction of TDS on Medical Reimbursement based on bona fide estimate of taxable salary

In the present case, as already detailed, the exemption in respect of medical expenditure is considered after collecting and verifying the details and evidence furnished by the employees. Policies and controls are in force to ensure that the requirements of the provision are fulfilled. The details filed before the TDS officer explains the policies adopted to fulfill the process adopted in considering the exemption provi

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7 Comments

  1. rambabushah says:

    My problem is that, my co. pay advance to hospital for providing the service to my employee.But the amount is reimburse from employee.Whether there is necessary to deducted tds form hospital.

  2. Y.B.REDDY says:

    Sir,
    Ours is an educational institution run by Navodaya Vidyalaya Samiti under Min. of HRD, GOI. The querry is that our employees are paid medical expenses incurred for their treatment including dependents by way of Medical Reimbursement. The claims will be restricted as per CGHS package rates. For example an employees undergo cardiac treatment in a private hospital which is recognised by Govt. of A.P. and spent Rs. 2.50 lakhs and submits the medical bill for reimbursement. However, the bills will be restricted to the package rates of CGHS and paid as reimbursement to the employee.

    Now, the querry is whether the amount paid towards reimbursement (suppose Rs. 1,90,000/-) will be taken to gross salary by exempting Rs. 15,000/- or nor? for calculating the tax.
    Kindly provide the guidelines in this regard.

    1. Pooran Singh says:

      किसी राजकीय कर्मचारी को चिकित्सा प्रतिपूर्ति के रूप में मिली धनराशि पर इनकम टैक्स की कटौती का नियम क्या है मान लो कर्मचारी को लगभग 250000 का भुगतान चिकित्सा प्रतिपूर्ति के रूप में वेतन से अलग प्राप्त हुआ है तो उस पर कितना इनकम टैक्स काटा जाएगा यह मानते हुए कि कर्मचारी 20% इनकम टैक्स के दायरे में है

  3. Somenath says:

    Hello,
    I have a unique problem and need advice.
    My wife was admitted in hospital, and Insurance has 20% co pay rider. I paid the 20% of bills and other instruments that Insurance doesn’t pay. The Original Bills are submitted to Insurance. They have provided a PDF copy of statement of total bill, what they paid, what i paid. However, when i submitted the same statement to my payroll, they have refused to accept it. Legally, can that statement be accepted? Can anyone help me with this.

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