Exemption of Medical Expenses Reimbursement.

Shefali Bajpai (Article Assitant & CA Final Student)   (1148 Points)

07 June 2008  

X, a Govt. employee received Rs. 3.5 lakh during FY 2007-08 against the Medical Expenses borne by him for some critical disorder during the FY 2001-03.

What will be the Tax Treatment of the Reimbursement received during the Previous Year and how much exemption can he claim?