Medical reimbursment dedution in this case ?

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uday singh Negi (Querist)
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15 February 2013 Dear Sir,

suppose a person getting monthly salary of rs. 50,000/-

and his break up is given below

basic 20,000/-
HRA 15,000/-
conveyance 10,000/-
Medical reimb. 5,000/-

medical allowance is fully taxable but as far as medical reimb. is concerned it is exempted up to 15000/-

so my query is this, if he provides medical bill up to rs. 15,000/- as reimbursement, can he get deduction of rs. 15,000/-

because reimbursement is fixed in a nature per month i think it is taxable ?

but some people says it is non taxable

and he can get deduction of rs. 15000/-

but i think reimbursement is apart from salary and it can not be included in salary ,and it is non taxable if employee provide bills for getting these deduction and these reimbursement is sepretaly shown as medical exp in the books of company not as part of salary or salary ?

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CA Parul Saxena

CA Parul Saxena (Expert)
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15 February 2013 yes reimbursement exp. doesn't form part of salary. For medical reimbursement income tax act has specific provision to allow deduction of Rs.15000/- only rest would be taxable.

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