INCOME TAX ON MEDICAL REIMBURSEMENT
2 years ago
My father was a state govt employee retired in 2017. My mother getting cancer treatment from a govt hospital. Now the problem is tax is levy on reimbursement because for example if income is 5,00000 and medical expenses is 3,50000 it become 8,50000 and we have to pay tax for it but our medical expenses are from 5,00000. Any suggestions what to do?
A.Dear Sir,
You have to approach local chartered accountant to solve your problem. In many cases such being happening and it will be solved by the Auditor or chartered accountant very easily.
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You have to approach local chartered accountant to solve your problem. In many cases such being happening and it will be solved by the Auditor or chartered accountant very easily.
Rate me Five Star*
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Ayantika Mondal @ Prime Legal
Responded 2 years ago
A.Hi,
Medical allowance is a fixed component that you receive every month as part of your monthly salary, that is taxable as salary income. No bills are required to be submitted for taking this allowance. Whereas Medical reimbursement is a tax-free component and as discussed above, it is exempted up to the amount spent by employee or Rs.15,000 whichever is less.
If you find my answer helpful then kindly rate me.
Medical allowance is a fixed component that you receive every month as part of your monthly salary, that is taxable as salary income. No bills are required to be submitted for taking this allowance. Whereas Medical reimbursement is a tax-free component and as discussed above, it is exempted up to the amount spent by employee or Rs.15,000 whichever is less.
If you find my answer helpful then kindly rate me.
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A.Hi,
One can claim reimbursement of medical expenses by submitting the original bills to the employer. The employer would accordingly reimburse such expenses incurred subject to the overall limit of Rs 15,000 without tax deduction.
If you find my answer helpful then kindly rate me.
One can claim reimbursement of medical expenses by submitting the original bills to the employer. The employer would accordingly reimburse such expenses incurred subject to the overall limit of Rs 15,000 without tax deduction.
If you find my answer helpful then kindly rate me.
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A.Who said tax is on medical reimbursement? Please visit the income tax site or buy a good book for income tax rules and read properly or else speak to a good CA and take consultation on this topic and clear your doubts.
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