Medical reimbursement / lic premium of previous year
This query is : Resolved
24 June 2012
Hi!
Please suggest whether bills of pervious year can be claimed in current year for Medical Reiumbursement exemption. Please provide Income Tax provision for same.
On same anology whether LIC premium paid in previous year can be allowed in current year financial year. Please guide with relevant Income Tax provision.
Please suggest whether bills of pervious year can be claimed in current year for Medical Reiumbursement exemption. Please provide Income Tax provision for same.
On same anology whether LIC premium paid in previous year can be allowed in current year financial year. Please guide with relevant Income Tax provision.
24 June 2012
When the amount is reimbursed ? in case it is reimbursed in current year, you can claim the benefit from your employer directly.
The reason for the same-
Salary income is taxed on due or receipt basis, whichever is earlier.
.
In case reimbursement is granted to you in the current year, that is because of the reason that - it can only be received. It becomes due only when it is paid to you
.
Deduction in respect of LIC Premium can be claimed on the basis of Date of Receipt issued by the insurance company.
.
The reason for the same-
Salary income is taxed on due or receipt basis, whichever is earlier.
.
In case reimbursement is granted to you in the current year, that is because of the reason that - it can only be received. It becomes due only when it is paid to you
.
Deduction in respect of LIC Premium can be claimed on the basis of Date of Receipt issued by the insurance company.
.
24 June 2012
Hi!
Thanks for feedback!
But, may be I will word it properly!
Can exemption be claimed in year 2012-13 for medical expenses incurred in previous year 2011-12.
Please revert, possibly please give reference to relevant income tax provision in this regard.
Thanks for feedback!
But, may be I will word it properly!
Can exemption be claimed in year 2012-13 for medical expenses incurred in previous year 2011-12.
Please revert, possibly please give reference to relevant income tax provision in this regard.
03 August 2024
Under Indian income tax law, medical reimbursements and their exemption are generally governed by the provisions applicable to the specific financial year in which the expense was incurred. Here's how it works:
### Exemption Claim for Medical Expenses
1. **Claiming Exemption for Previous Years:**
- **General Rule:** Medical reimbursements are typically claimed in the financial year in which they are incurred and reimbursed. You cannot generally claim a deduction or exemption in a subsequent year for expenses incurred in a previous year.
- **Revised Return for the Same Year:** If you missed claiming medical reimbursement in the financial year it was incurred, you could file a revised return for that year, provided it is within the allowed time frame for revising returns.
2. **Relevant Income Tax Provisions:**
- **Section 10(14):** This section provided exemptions for medical reimbursement up to ₹15,000 per annum for medical expenses incurred before the Finance Act, 2018. The exemption was applicable in the financial year in which the reimbursement was made.
- **Section 80D:** Provides deductions for premiums paid for health insurance policies. However, it applies to premiums paid out of income chargeable to tax, not to reimbursement of medical expenses.
3. **Revised Return Option:**
- **Filing a Revised Return:** If medical expenses were incurred in FY 2011-12 but not claimed in that year, you could potentially file a revised return for FY 2011-12 (Assessment Year 2012-13) to include the medical reimbursement claim. The revised return should be filed within the time limits prescribed by the Income Tax Act, which is generally within one year from the end of the relevant assessment year.
4. **Provisions for Claiming in Subsequent Years:**
- **No Carry Forward:** As per the income tax provisions, you cannot carry forward claims or deductions from one financial year to another. The claim should be made in the same year in which the expense was incurred and reimbursed, or through a revised return for that year if the claim was missed initially.
### Summary:
- **Exemption Claim in Subsequent Year:** Generally, you cannot claim medical reimbursement for expenses incurred in a previous financial year (e.g., 2011-12) in a subsequent financial year (e.g., 2012-13). Claims must be made in the year the expenses were incurred or through a revised return for that financial year.
- **Revised Return Option:** If the claim was missed, you can file a revised return for the FY 2011-12 (Assessment Year 2012-13) to claim the exemption, subject to the time limit for revising returns.
For accurate guidance tailored to your specific situation, including the possibility of filing a revised return or any other exceptions, consulting a tax professional or chartered accountant is highly recommended. They can provide detailed advice based on the latest tax laws and your specific circumstances.
### Exemption Claim for Medical Expenses
1. **Claiming Exemption for Previous Years:**
- **General Rule:** Medical reimbursements are typically claimed in the financial year in which they are incurred and reimbursed. You cannot generally claim a deduction or exemption in a subsequent year for expenses incurred in a previous year.
- **Revised Return for the Same Year:** If you missed claiming medical reimbursement in the financial year it was incurred, you could file a revised return for that year, provided it is within the allowed time frame for revising returns.
2. **Relevant Income Tax Provisions:**
- **Section 10(14):** This section provided exemptions for medical reimbursement up to ₹15,000 per annum for medical expenses incurred before the Finance Act, 2018. The exemption was applicable in the financial year in which the reimbursement was made.
- **Section 80D:** Provides deductions for premiums paid for health insurance policies. However, it applies to premiums paid out of income chargeable to tax, not to reimbursement of medical expenses.
3. **Revised Return Option:**
- **Filing a Revised Return:** If medical expenses were incurred in FY 2011-12 but not claimed in that year, you could potentially file a revised return for FY 2011-12 (Assessment Year 2012-13) to include the medical reimbursement claim. The revised return should be filed within the time limits prescribed by the Income Tax Act, which is generally within one year from the end of the relevant assessment year.
4. **Provisions for Claiming in Subsequent Years:**
- **No Carry Forward:** As per the income tax provisions, you cannot carry forward claims or deductions from one financial year to another. The claim should be made in the same year in which the expense was incurred and reimbursed, or through a revised return for that year if the claim was missed initially.
### Summary:
- **Exemption Claim in Subsequent Year:** Generally, you cannot claim medical reimbursement for expenses incurred in a previous financial year (e.g., 2011-12) in a subsequent financial year (e.g., 2012-13). Claims must be made in the year the expenses were incurred or through a revised return for that financial year.
- **Revised Return Option:** If the claim was missed, you can file a revised return for the FY 2011-12 (Assessment Year 2012-13) to claim the exemption, subject to the time limit for revising returns.
For accurate guidance tailored to your specific situation, including the possibility of filing a revised return or any other exceptions, consulting a tax professional or chartered accountant is highly recommended. They can provide detailed advice based on the latest tax laws and your specific circumstances.
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