05 February 2016
Dear Experts,
Our Clients wife expired on Jan 15 on medical grounds.They got partial reimbursement from the company towards hospital bills of their wife after her death in their joint bank account.My question is does this reimbursement amounts to income in the hands of the client or is there any exemption pertaining to this? and my client is insisting on filing the return of his deceased wife . So if we consider it as income of wife what are the procedures for filing the return of the same.
I will be obliged if someone could help..
Thankyou
05 February 2016
If the reimbursement is for the expenses incurred in Govt hospital or approved hospital it is exempted. If the reimbursement is from your client's company then it will not be considered as income of wife but income of your client only if not exempted. If considered as income of the wife, as it is reimbursed by her employer pay taxes and register legal heir in E filing site and file the return.
CAclubindia
