Singareni: Income tax deduction for retired employee health plan: CMD
Contributory Post Retirement Medicare Scheme-Non-Executive (CPRMS-NE) scheme launched to provide health security to retired Singareni employees is entitled to income tax exemption.
As per the directions of Singareni CMD Mr. N. Sridhar, Director (Operations) Mr. S. Chandrasekhar, Director (Pa, Finance) Mr.N. Balaram’s with tireless efforts, orders were issued by the Revenue Department applying the income tax exemption.
This paved the way for the transfer of the scheme money in the company account to the CPRMS-NE Trust. They can then be transferred to LIC, which is selected as the fund manager.
Benefit with income tax deduction …
CPR MS-N, owned by Singareni, has been implementing the scheme for retired employees since April 1, 2018. So far 28,000 retired employees have joined the scheme.
The company contributed Rs 18,000 per share on behalf of each retired employee for the scheme. Retired employees paid the prescribed fee in accordance with the wage boards they landed.
The Singareni ownership has also set up a special trust in 2019 to manage the scheme. The Director (Personnel) acts as the Chairman of the Trust. The amount deposited by the employees in the management of the scheme and the amount deposited as company share is currently maintained in the company account.
Income tax deduction is required to deposit the contribution amount from the company account to the CPRMS-NE Trust account to enable the management of the scheme. Otherwise tax will have to be paid on that amount.
In this context, apply for income tax exemption in February 2020. The latest IT exemption orders have been issued. For this, Director (Operations) Mr. S. Chandrasekhar, Director (Pa, Finance) Mr. N. Balaram consulted with IT executives from time to time.
Director (Finance) Mr. N. Balaram said that due to the income tax exemption for the scheme, the amount deposited under the entire scheme can be transferred to the trust account without any IT deductions, thereby making the scheme more smooth.
He said the Retired Officers’ Health Scheme (CPRMS-E) also got income tax exemption a few months ago.
Health Slow CPRMS-NE for Retired Employees
A retired non-executive who joins the CPRMS-NE scheme will be able to get a maximum of Rs 8 lakh worth of medical care for a lifetime for both spouses by paying a membership fee of Rs 40,000.
Those who have been diagnosed with a life-threatening illness will have access to unlimited medical care at no cost. The scheme has already provided over 6,000 retired employees with corporate medical services worth over Rs 90 crore.