Medical reimbursement issue

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Rachit (Querist)
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17 March 2015 An employee pays mediclaim policy premium of Rs.30,000 p.a. He claims deduction u/s.80D for Rs.15,000/- and the same is granted by the employer. Further he is also entitled to Rs.15,000 as medical reimbursement from the employer, Can he claim the balance amount of Rs.15,000/- paid as mediclaim premium to the company to claim this amount of Medical Reimbursement ?????

Amol S Joglekar

Amol S Joglekar (Expert)
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17 March 2015 No. That balance amount of 15,000 can NOT be and SHOULD not be claimed as reimbursement. It wont be a GOOD governance practice.

Rachit

Rachit (Querist)
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17 March 2015 Whether the provisions of I. Tax Act prohibits it? If so then under which section?

Amol S Joglekar

Amol S Joglekar (Expert)
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17 March 2015 sec 17 (2) (v) : any sum paid by the employer in respect of any expenditure actually incurred by the employee on his medical treatment or treatment of any member of his family.

The mediclaim insurance expenses are NOT considered to be expenditure on MEDICAL TREATMENT.

Your views please.

Rachit

Rachit (Querist)
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17 March 2015 Proviso (iv) to Sec.17(2) : any sum paid by the employer in respect of any premium paid by the employee to effect or to keep in force an insurance on his health...............for the purposes of sec. 80D.

Amol S Joglekar

Amol S Joglekar (Expert)
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17 March 2015 Who has paid the insurance?
employer or employee?
Hope we are not confusing REIMBURSEMENT versus expenditure by Employer.
Your views please.

Rachit

Rachit (Querist)
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17 March 2015 Employee pays Rs.31,000/- as mediclaim policy premium by cheque.
Rs. 15,000/- is reimbursed by the employer to the employee.
Balance 16,000/- is claimed by the employee as dedn. u/s.80D (Max.15,000/- for A.Y.2015-16]

Amol S Joglekar

Amol S Joglekar (Expert)
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19 March 2015 payment of mediclaim policy can NOT be regarded as expenditure on MEDICAL TREATMENT.

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