Medical Bills Exemption U/s 17(2)

Page no : 2

sudarshan (CA) (745 Points)
Replied 29 July 2011

Without bills being produced, company will not reimburse medical exp, if it does then it will be medical allowance, fully taxable

CA Vibhash Kumar Sah (Associate Manager) (700 Points)
Replied 29 July 2011

Originally posted by : sudarshan
	Without bills being produced, company will not reimburse medical exp, if it does then it will be medical allowance, fully taxable

Hi, you are right. but there is some other ways also. Normally a company process a fixed monthly Medical Reimbursement with the monthly salary. At the end of the year or say in the month of jan/feb, company collects the original bill from employees and based on the Medical bills submitted, exemption is allowed (subject to max.15000). The amount for which bills has not been submitted is considered as taxable salary and same is disclosed in Form 16 accordingly.

In the query of Mr. VS, he has mentioned, in form 16, medical reimbursement has been shown as taxable salary (though he has not received the amount, may be given to him in the month of Aprill'11 along with March'11 normal salary), it can easily be cliamed as Medical Reimbursement at the time of filing ITR. However, this my person view.

sudarshan (CA) (745 Points)
Replied 29 July 2011

there is no term as fixed monthly medical reimbursement. it will be considered as medical allowance taxable

CA Vibhash Kumar Sah (Associate Manager) (700 Points)
Replied 30 July 2011

Originally posted by : sudarshan
	there is no term as fixed monthly medical reimbursement. it will be considered as medical allowance taxable

Well this the policy many corporates are following and I dont find any harm in this.

Namdeo (FINANCE EXECUTIVE) (23 Points)
Replied 17 December 2014

Hi, I have question regarding Medical Bill exemption, I have medical Bills & Mediclaim Insueance policy also, So can i claim Medical Bill u/s 17(2) & Medical Insurance Premuim u/s 80D

Please advice