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Reimbursement of Medical Expenses

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This query is : Resolved

SURESH KUMAR.P (Querist)

27 October 2009 Employer give Reimbursement for Medical Expenses (But yearly Fixed Amount)incurred by employee.Whether it's taxable under employee head under Income from salary or not?

Ram Avtar Singh

Ram Avtar Singh (Expert)

27 October 2009 If an employee receives some money for his medical treatment or the treatment of any member of his family or any of his dependant relatives then a sum up to Rs. 15,000 p.a. is not treated as a taxable perquisite as per Clause (b) of the provision to Section 17 (2) of the I.TA. Act. This exemption is enjoyed by the employee only if the expenditure is actually incurred on his medical treatment or for treatment of any member of the family or a dependant relative. It may be noted here that there is no condition that the medical treatment should be at any of the approved hospitals. It could be at any place and from any type of doctor belonging to Allopathic, Ayurvedic, Unani or Naturopathy system of medicine. If medical allowance is received then it would be fully taxable.

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