80D

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vaishali (Querist)

27 May 2010 Company A pays mediclaim for its employees (and their family members). Any premium paid above Rs.2500 is recovered from the employees from the medical reimbursement paid to them. Will the employee be eligible to claim the deduction under section 80D of the Income-tax Act, 1961. The insurance company has agreed to provide a letter to each employee of the company stating the amount of mediclaim premium paid for the year.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)

27 May 2010 Yes , employee is eligible to claim the dedution, if amount is recovered by employer.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)

27 May 2010 Yes , employee is eligible to claim the dedution, if amount is recovered by employer.

vaishali

vaishali (Querist)

28 May 2010 But to the extent the amount is recovered from medical reimbursement, which is not taxable in hands of the employees, can it be considered to be paid out of 'income chargeable to tax'.

Also, can the premium amount be adjusted towards medical reimbursements since only the amount actually incurred on medical treatment is not taxable in the hands of the employees.

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