Medical bill

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 April 2016 Our company do not provide medical reimbursement to the employee, but have medical allowance in salary breakup. One employee submit medical bill like medical test, medicines etc, how can i show in tax benefit? please help

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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06 April 2016 Medical reimbursement is exempted. fixed medical allowance is fully taxable. just change the component name and take the tax benefit against the bills

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Querist : Anonymous

Querist : Anonymous (Querist)

07 April 2016 but in earlier months medical component paid as medical allowance & this head shown also in payslip. How can i consider that to medical reim.?

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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07 April 2016 Medical Allowance and Medical Reimbursement are difference from each other. if it is fixed allowance then it will fully taxable and all to salary income and if it reimbursement the it will exempted upto Rs. 15000/- and excess amount will be added to your taxable income ...!!!

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Querist : Anonymous

Querist : Anonymous (Querist)

08 April 2016 its mean medical allowance paid which is taxable, but when employee submit medical bill the taxable amount to be reduced upto rs.15000/-, is it?

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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08 April 2016 No. I will explain you clearly
1. if medical allowance received with salary (as a part of salary) fixed monthly then it will be fully taxable no need to consider Rs. 15000/- exemption limit
2. if as per company policy medical expense will be claimable then you can submit expense bill and take reimbursement for those bill....now you can avail exemption limit of Rs. 15000/- here.

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Querist : Anonymous

Querist : Anonymous (Querist)

08 April 2016 your point no. 2 is not clear to me. listen, i paid every month medical allowance (rs.3510/- p.m) with salary which is taxable, now employee submitted medical bill of rs.15000/-, we do not have any policy regarding salary, we simply pay salary to employee, pls clear your point 2 based on my given information.

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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08 April 2016 If you pay fixed allowance to your employee then no exemption limit available even if they provide medical bills
if you are not giving fixed medical allowances to employee and employee claim medical expenses by submitting you bill then you can reimbursement as well as you can give exemption limit

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