Salary

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Querist : Anonymous

Querist : Anonymous (Querist)

06 July 2013 Employer has reimburse mobile expenses and medical expenses of Rs 5500 n 15000..but as per form 16 it is included in salary u/s 17(1). Is it exempt. While efiling where I show it ? Can I show it in allowance exempt u/s 10..otherwise it will be taxable coz there is no other column for ded . of such exp...

CA SUMiT PATWARi

CA SUMiT PATWARi (Expert)
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07 July 2013 Such amounts paid by employer would qualify for reimbursements only if you have submitted proper bills with your employer... Ask for a rectified form 16 in such a case.

Where no bills have been submitted, liable to be taxed.

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Querist : Anonymous

Querist : Anonymous (Querist)

07 July 2013 Is it compulsory to get rectified form 16 or we can file return after deducting those reimburse amt if we have bills of that exp....in that case where those amt will be deducted.....

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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22 July 2025 Good question! Here’s a clear breakdown:

Mobile & Medical Expense Reimbursements by Employer — Tax Treatment
If you submitted proper bills to employer and they reimbursed the exact amount:

These reimbursements are not taxable under Section 10(14) read with Rule 2BB (for medical) and relevant IT rules for mobile expenses.

Employer should ideally exclude these from taxable salary in Form 16 or show them separately as exempt allowances.

If Form 16 shows these amounts included in salary under Section 17(1):

It means the employer has treated them as taxable salary.

This can happen if employer did not get proper bills or has not excluded them correctly.

What should you do?
Ideally, ask employer for a rectified Form 16 reflecting these reimbursements as exempt (if you have submitted bills).

If rectified Form 16 is not available, you can still claim the exemption while filing your return.

How to claim exemption while filing ITR?
In ITR forms, under the Salary Income section, there is usually a field for "Allowances exempt under section 10" where you can show the exempt amount (e.g., medical reimbursement exempt u/s 10(14), mobile reimbursement if applicable).

If such a specific field is missing, you can show the total salary income as per Form 16, then claim the exempt amounts under the section for "Income exempt under section 10" or under "Other deductions", depending on the ITR form you are using.

Summary for you:
Situation What you do in ITR filing
Have bills & employer did not exclude reimb. Claim exemption under Section 10(14) / appropriate section
Employer included reimb. as salary in Form 16 File return with full salary as per Form 16, then claim exempt allowance separately

Note:
You cannot directly deduct reimbursements from your salary income in the ITR, but claim exemption under section 10 for those amounts.

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