Whether TDS is deducted from hospitalization bills reimbursed by employer

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..... Dear Sir, The husband of a lady met with an accident and was comatose for three months due to severe head injury, after which he died. The wife of this person is an employee of State Bank of India. The medical bill was reimbursed by the employer (SBI) to the employee (lady in question). The question is, whether the bill amount will attract TDS under Indian Tax laws. - Reply By CASeetharaman KC .....

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..... - The Reply = Any medical expenses when paid is considered as part of taxable salary. If the employee submits proof of having incurred the expenditure towards medical treatment, the sum spent towards medical treatment or ₹ 15,000/-, whichever is less, is excluded from salary. The exclusion is on the basis of the proviso (v) to section 17(2) of the Income Tax Act . If the amount spent tow .....

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..... ards medical treatment is in excess of ₹ 15,000/- the excess (beyond ₹ 15,000) is not considered as a deduction. Effectively, the excess amount spent continues to remain taxable. If no proof of having incurred the expenditure towards the medical treatment is produced by the employee, the entire sum paid is considered as a perquisite. TDS under section 192 of the Act has to be deducte .....

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..... d accordingly. In this case presuming that proof has been submitted any amount in excess of ₹ 15000 would be subject to TDS provided of course that this limit of ₹ 15000 has not been already exhausted earlier during the Financial Year - Reply By Ganeshan Kalyani - The Reply = TDS is deductible under 192 . - Reply By DR.MARIAPPAN GOVINDARAJAN - The Reply = The reply given by CA S .....

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..... eetharaman is absolutely correct. - Whether TDS is deducted from hospitalization bills reimbursed by employer - Query Started By: - Raajdwip Vardhan Dated:- 16-2-2019 Income Tax - Got 3 Replies - Income Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

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