Taxability of fixed medical reimbursement

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vinay kumar (Querist)
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25 August 2018 Will a retired employee be taxed on reimbursement on giving a certificate for incurring medical expenses and receiving a fixed amount of say Rs. 1500 per month under a compensatory contributory scheme of a public sector company or will the amount be tax free?.

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)
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26 August 2018 Since this is a case of fixed medical reimbursement and not of Fixed medical allowance, the reimbursed amount up to Rs.15000 per annum will not be taxable. The amount above Rs.15,000 is taxable in the hands of the pensioner

vinay kumar

vinay kumar (Querist)
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30 August 2018 As per ICAI plea to government in 2018, reimbursement to retired employees of medical expenses is fully taxable. Please clarify regarding your statement that upto Rs 15000 is tax free.

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