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taxable income ?? or exempt income ??


06 January 2017 my uncle had a bypass surgery. he got mediclaim reimbursement of all his medical expenses.. Also he got extra amount of Rs.50000/- as critical illness benefit. whether this 50000/- is taxable or whether it is exempt income..?? plz guide me as per income tax act 1961 with section.

06 January 2017 Priyen, there is no direct section applicable to Medical Insurance Claim received, unlike Life Insurance Claim which is dealt with under Section 10 as exempt income, subject to certain conditions.
In my view, the amount so received is not "Income" which can be considered as taxable in the hands of your uncle. The payment received by your uncle would be based on the nature of the illness and treatment undergone. It may be considered a capital receipt not meeting the definition of "Income" in the normal parlance.

06 January 2017 thank u so much Mr.Anand..


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