MANAGEMENT

Detailed explanation-1: -The rest 50% is paid by the employer. By the end of the year, Vikas can claim a tax deduction under section 80D of the Income Tax Act. The taxability of medical insurance paid by the employer will also be 50% of the total premium amount.

Detailed explanation-2: -For the employer, this Group Insurance Scheme is characterized as an employee benefit and is termed as ‘profit in lieu of salary’. In most cases, employers pay the applicable premium to the insurer on behalf of the employee.

Detailed explanation-3: -In this case, the claim amount received will not be taxed as it is only reimbursement of your medical expenses and not income or profit for you.