Medical reimbursement issue
This query is : Resolved
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
(Expert)
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.
17 March 2015
Whether the provisions of I. Tax Act prohibits it? If so then under which section?
Amol S Joglekar
(Expert)
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.
The mediclaim insurance expenses are NOT considered to be expenditure on MEDICAL TREATMENT.
Your views please.
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
(Expert)
17 March 2015
Who has paid the insurance?
employer or employee?
Hope we are not confusing REIMBURSEMENT versus expenditure by Employer.
Your views please.
employer or employee?
Hope we are not confusing REIMBURSEMENT versus expenditure by Employer.
Your views please.
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]
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
(Expert)
19 March 2015
payment of mediclaim policy can NOT be regarded as expenditure on MEDICAL TREATMENT.
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