Medical Reimbursement

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 January 2010 We are receiving Rs.1250/- per month towards reimbursement of medical expenses for me ,my supouse and children.Is it taxable under notification No. 94 dt. 18.12.2009

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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05 January 2010 Receiving Fixed medical allowance is taxable.
Reimbursement of medical bills are exempted upto 15000.00 p.a.

CMA. Dinesh S Adhikari, ACMA

CMA. Dinesh S Adhikari, ACMA (Expert)
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05 January 2010 Section 17(2) says that Rs. 15,000 are exempt, and there is no change in Medical Facility/Reimbursement according to new notification .

Therefore, you can take exemption upto amount of Rs. 15,000 per annum.

Regards!!!
Dinesh S. Adhikari

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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05 January 2010 agree with Mr. Sharma

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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06 January 2010 No. it exempted Rs.1250/- per month

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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07 January 2010 There is no exemption on monthly basis. Exemption is for 15000.00 p.a.

If you get a fixed exemption of 1250 p.m. and submitting the bills of same amount p.m. that simply means that you are getting fixed medical allowance not the reimbursement as a every employee cannnot spend the same amount on medical each month.

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