Pawan Mittal (CA Final) (702 Points)
04 August 2014Dear Experts
One of our client X Pvt. Ltd. is paying Medical Reimbursement of Rs. 15000 every year to its employees. But the employees don't produce the bills to X Pvt. Ltd. every year. Employees just keep the bills with themselves. Whether the employees can claim the medical reimbursement allowance of Rs. 15000 every year?
Mihir
(Wealth Manager)
(5293 Points)
Replied 04 August 2014
If the company is paying medical reimbursement without asking for any bills, then it will be treated as allowance, and shall be taxable.
If the bills are produced and on that basis, medical reimbursement is paid to the employee, then it will be tax-free.
CA PRIYUL SHAH
(JOB)
(901 Points)
Replied 04 August 2014
Agree with Mr. Mihir
Company shall keep xerox copy of the bills if employees want bills for future reference.
Tribhuvan Aditya Singh
(Student as well as Self-employed)
(3710 Points)
Replied 04 August 2014
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