Q. <\/span>I retired from BSNL and get pension from the Union government. BSNL reimburses out-patient (OP) treatment expenditure to its serving as well as retired employees in the form of quarterly allowance or against vouchers. It also allows us to take in-patient (IP) treatment in empanelled hospitals.<\/h2>\nReimbursement of OP expenditure against vouchers\/quarterly allowance is being taxed.<\/h2>\nOf late, BSNL has permitted only pensioners to opt for CGHS (Central Governement Health Scheme) and asked us to pay yearly\/10-year subscription direct to CGHS. We were told to claim reimbursement from BSNL. I opted for CGHS by paying 10-year subscription of \u20b91.20 lakh in October 2019 and submitted my claim to BSNL. I am waiting for reimbursement. Some of my retired colleagues have received reimbursement during February\/March 2020.<\/h2>\nNormally, only Central government servants (serving\/retired), residing in CGHS covered area, are eligible for the CGHS facility by deducting from their salary\/paying CGHS subscription, which is not reimbursed by the government. As per Section 80 D of the IT Act, CGHS subscription paid can be claimed as deduction as eligible for medical insurance. My doubt now is with respect to taxabiity of reimbursement of CGHS subscription. I feel reimbursement of CGHS subscription is to be taken as income under Section 192 just like medical reimbursement and due tax has to be paid\/recovered. Kindly clarify.<\/h2>\n<\/p>\n
A. <\/span>CGHS subscription paid can be claimed under Section 80D as deduction depending on the limits prescribed in the provision.<\/p>\nHowever, in your case, CGHS subscription amount is being reimbursed by your employer as a part of an arrangement with pensioners from the organisation. As the reimbursement is not in direct connection with the employment nor is it discharged in the course of the employment, the reimbursement is a form of a medical allowance or any other allowance only. Hence, the same is taxable in your hand and Section 80D benefit to the extent eligible can be claimed.<\/p>\n
Q. <\/span>Which ITR form has to be filled in by a person who is salaried and does stock trading in cash and F&O segment? How will the taxes will be calculated?<\/h2>\n<\/p>\nA. <\/span>Profit or loss in intraday stock trading are taxed under \u201cIncome from Speculative Business.\u201d You are required to disclose each day\u2019s profit or loss in your ITR by way of consolidating them and arriving at profit\/loss for the entire year and disclose it under \u201cSpeculative Business\u201d while derivative trading in both shares and commodities come under \u201cIncome from Non-Speculative Business\u201d (It is to be noted that both speculative and non-speculative businesses come under Profits and Gains from Business or Profession). You are required to file your ITR under ITR-3 and taxes will be calculated at your respective slab rates for the particular assessment year in case of overall profit in \u201cSpeculative Business\u201d and likewise in \u201cNon-Speculative Business\u201d. In case of loss, the same can be either set off against other speculative income and carried forward for a period of four years in case losses are unadjustable. While non-speculative loss can be set off against Income from Other Sources or Income from House Property or Income from other non-speculative business and carried forward for eight years in case losses are unadjustable, the carried forward non-speculative business losses can be adjusted in the forthcoming years with only non-speculative business income. Further, any direct expenses incurred for trading in stock and derivatives can be claimed as business expenses.<\/p>\n(The author is partner, GSS & Associates, Chartered Accountants, Chennai)<\/em><\/p>\n<\/div>\n
Of late, BSNL has permitted only pensioners to opt for CGHS (Central Governement Health Scheme) and asked us to pay yearly\/10-year subscription direct to CGHS. We were told to claim reimbursement from BSNL. I opted for CGHS by paying 10-year subscription of \u20b91.20 lakh in October 2019 and submitted my claim to BSNL. I am waiting for reimbursement. Some of my retired colleagues have received reimbursement during February\/March 2020.<\/h2>\nNormally, only Central government servants (serving\/retired), residing in CGHS covered area, are eligible for the CGHS facility by deducting from their salary\/paying CGHS subscription, which is not reimbursed by the government. As per Section 80 D of the IT Act, CGHS subscription paid can be claimed as deduction as eligible for medical insurance. My doubt now is with respect to taxabiity of reimbursement of CGHS subscription. I feel reimbursement of CGHS subscription is to be taken as income under Section 192 just like medical reimbursement and due tax has to be paid\/recovered. Kindly clarify.<\/h2>\n<\/p>\n
However, in your case, CGHS subscription amount is being reimbursed by your employer as a part of an arrangement with pensioners from the organisation. As the reimbursement is not in direct connection with the employment nor is it discharged in the course of the employment, the reimbursement is a form of a medical allowance or any other allowance only. Hence, the same is taxable in your hand and Section 80D benefit to the extent eligible can be claimed.<\/p>\n
Q. <\/span>Which ITR form has to be filled in by a person who is salaried and does stock trading in cash and F&O segment? How will the taxes will be calculated?<\/h2>\n<\/p>\nA. <\/span>Profit or loss in intraday stock trading are taxed under \u201cIncome from Speculative Business.\u201d You are required to disclose each day\u2019s profit or loss in your ITR by way of consolidating them and arriving at profit\/loss for the entire year and disclose it under \u201cSpeculative Business\u201d while derivative trading in both shares and commodities come under \u201cIncome from Non-Speculative Business\u201d (It is to be noted that both speculative and non-speculative businesses come under Profits and Gains from Business or Profession). You are required to file your ITR under ITR-3 and taxes will be calculated at your respective slab rates for the particular assessment year in case of overall profit in \u201cSpeculative Business\u201d and likewise in \u201cNon-Speculative Business\u201d. In case of loss, the same can be either set off against other speculative income and carried forward for a period of four years in case losses are unadjustable. While non-speculative loss can be set off against Income from Other Sources or Income from House Property or Income from other non-speculative business and carried forward for eight years in case losses are unadjustable, the carried forward non-speculative business losses can be adjusted in the forthcoming years with only non-speculative business income. Further, any direct expenses incurred for trading in stock and derivatives can be claimed as business expenses.<\/p>\n(The author is partner, GSS & Associates, Chartered Accountants, Chennai)<\/em><\/p>\n<\/div>\n
(The author is partner, GSS & Associates, Chartered Accountants, Chennai)<\/em><\/p>\n<\/div>\n