• TDS on hospital reimbursement bills

Please clarify whether TDS to be deducted by employer on reimbursement of expenses incurred due to hospitalisation by employee.
What is the limit
Asked 4 years ago in Income Tax

Dear Sir/Madam,

 

on reimbursement TDS provisions not applicable  


For more details/clarity you can read this judgment 

 

Non deduction of TDS on Medical Reimbursement based on bona fide estimate of taxable salary

 

The Assistant Commissioner of Income Tax (TDS) Vs M/s. SAP Labs India Pvt. Ltd. (ITAT Bangalore)

Appeal Number : ITA Nos. 1414 to 1416/Bang/2012

Date of Judgement/Order : 15/07/2013

Related Assessment Year : 2008- 09 to 2010- 11

Courts : All ITAT (6189) ITAT Bangalore (308)

 

 

Lalit Bansal
CA, Delhi
773 Answers
61 Consultations

5.0 on 5.0

No since it is mere reimbursement 

Vidya Jain
CA, Kolkata
1010 Answers
58 Consultations

4.8 on 5.0

Dear Sir,

 

Hope you are doing well !!

 

No, there is no tds liability on reimbursement of expenses If bill is separately raised for reimbursement of expenses.  

Please go through the below case law for your reference:

 

Case Name : ITO Vs Deepak Bhargawa (ITAT Delhi)

Appeal Number : ITA No. 343/Del/2012

Date of Judgement/Order : 13/11/2017

Related Assessment Year : 2007-2008

Courts : All ITAT (6189) ITAT Delhi (1410)

 

Payal Chhajed
CA, Mumbai
5188 Answers
288 Consultations

5.0 on 5.0

Can you please elaborate your question. Employer deducts TDS considering your entire salary and not on each and every component separately.

 

It seems to be in the nature of perquisites and hence will be taxable and TDS will be deducible.

Lakshita Bhandari
CA, Mumbai
5687 Answers
909 Consultations

5.0 on 5.0

If the reimbursement is with regard to some expense which the employer was to incurr on your behalf and it was mentioned in your agreement then no TDS would be deducted on same but if its in form of perquisite then TDS will be deducted.

 

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you.

Naman Maloo
CA, Jaipur
4272 Answers
97 Consultations

5.0 on 5.0

Hello,

 

If this is just in the nature of reimbursement, then TDS is not deductible.

While it is part of the salary as perquisites, then TDS would be deductible on the whole salary including perquisites.

 

I hope this answer satisfies your requirement.

 

Regards,

CA Hunny Badlani

 

 

Hunny Badlani
CA, Madhya Pradesh
2608 Answers
16 Consultations

5.0 on 5.0

Money received through a claim under a medical policy is only a reimbursement of expenditure already incurred by the policyholder. As this does not amount to profit or income for the insured person, this money is not taxable.I hope this facility is uniformly availabel to all employees and is not a fixed allowance

Jasmina Jain Shah
CA, Greater Mumbai
454 Answers
4 Consultations

5.0 on 5.0

Hi

 

No tds on reimbursement to be deducted. 

 

Hope it helps 

Swati Agrawal
CA, Mumbai
1146 Answers
7 Consultations

5.0 on 5.0

Ask a Chartered Accountant

Get tax answers from top-rated CAs in 1 hour. It's quick, easy, and anonymous!
  Ask a CA