TDS on Medical out door reimbursement to retired employees - Reg

[CMA VENKATESHAM MUTA]

Sir/Madam,

Employees retired from service and they are getting a pension of ₹ 50,000/- per month from Dept of telecom (DOT), and we , BSNL, reimbursing the medical expenditure to the retired employees approximately 80,000/- per annum. Please clarify

1) Whether BSNL is liable to deduct TDS from the medical reimbursement paid to retired employees.

2) If so, Whether we need to consider the pension amount also for consideration of slab rate for TDS.

Kindly clarify the above please.

[KASTURI SETHI]

Sir,

I am pensioner. I retired from Central Govt. job. No TDS is being deducted from medical reimbursements made to us under CGHS. However, I request other experts on this forum to confirm whether I am right or not.

[DR.MARIAPPAN GOVINDARAJAN]

For indoor treatment no TDS will be there. For reimbursement of outdoor treatment if the reimbursement exceeds ₹ 15,000/- in a year TDS will be recovered automatically.

[CMA VENKATESHAM MUTA]

Sir,

Thanks a lot for the replyg given sir,

Kindly guidei in the following doubts

1) If it is indoor treatment, bill amount will be reimbursed to the hospital ( Empanelled hospital) and TDS will bed deducted.

2) In case of non empanelled bills will be reimbursed to the employee, if it is emergency, and TDS will be deducted.

3) My doubt is in case of retirede employeesi n BSNL, pension will be paid by DOT and medical outdoor bills reimbursement will be by BSNL, in all the cases the amountl lies between ₹ 50000 to 100000 per annum.

Is BSNL liable to deduct TDS on medical reimbursement ?

If yes, at what rate ?

Do we need to consider the pension amount also ?

Kindly guide in the above issues .Please.

[DR.MARIAPPAN GOVINDARAJAN]

Pension is by Department of Telecom. But medical reimbursement is by BSNL. TDS is done by BSNL if the reimbursement exceeds the threshold limit. The TDS is rate is @ 10%.

[DR.MARIAPPAN GOVINDARAJAN]

Please give your mobile number. I will speak to you.

[CMA VENKATESHAM MUTA]

My mobile number is 9490000575

AI Summary

TDS on medical reimbursements: outdoor claims above threshold subject to deduction by employer at specified rate. Practitioner responses indicate that medical reimbursements under CGHS may not attract TDS; indoor treatment paid to empanelled hospitals generally avoids deduction, while outdoor reimbursements exceeding an annual threshold are treated as taxable and the employer making the reimbursement is responsible for deducting TDS, with one contributor citing a ten percent deduction rate. The aggregation of pension with reimbursement for slab purposes was queried but left unresolved; pension may be paid by a separate department while the reimbursing employer handles TDS.