Medical reimbursement

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 July 2012 Hi,

I have a query on medica reimbursement component paid by employers to employee as a part of employee CTC. I understand that its a perk paid and is taxable if bills are not submitted by employee

I have no bill to be sumbitted to the company for claiming exemption. But I am ready to forgo the tax on the same and with withdraw the balance amount. But the employer asserts that such amount can be paid by the company only if bills are submitted and if no bills are submitted the employer is not required to pay such amount. I argued that employer is required to pay such amount after TDS but it is sure that employer has to pay such amount.

Kindly help me as in our company there are employees who have been carrying forward their medical reimbursement claims for years and have accumulated huge amounts but cannot claim for lack of medical bills.

Help with case laws if any for this issue.

Mohit Naithani

Mohit Naithani (Expert)
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27 July 2012 Fixed Medical allowance is Fully Taxable.
Hence reimbursement of medical expenses is not taxable upto Rs 15000/- per FY.

If company is not paying you the same without reimbursement then its not a part of Your CTC and you have to submit Medical bill agt it. and if company paid you without bill so its to be assume that its a fixed Medical allowance and Part of your CTC..

Querist : Anonymous

Querist : Anonymous (Querist)

03 August 2012 Thanks a ton for your reply.

My appointment letter mentions the CTC amount inclusive of the Medical reimbursement amount. Hence I consider, it is part of CTC and must be paid irrespective of whether medical bills are submitted or not.

Could you please quote any case law / circular or relevant section of the Act to defend my self.

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