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Deduction U/s. 80D

CA Suraj Prasad Shaw (Chartered Accountant) (504 Points)

18 August 2010

Whether Mediclaim reimbursed by the employer is taxable?

Whether the deduction u/s.80D can be claimed on the above mediclaim by the employee?

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9 Replies

Mayank (Sr.Accountant) (152 Points)
Replied 18 August 2010

Hiiiii

Deduction u/s 80 D is allowed to an individual & HUF

Medical insurance premium paid in other than cash will be allowed as deduction.Following are the amount of deduction:

In case senior citizen amount paid or Rs.20000/-will be allowed as deduction (which ever is lower)

other than senior citizen amount paid or Rs.15000/- will be allowed as deduction (which ever is lower)

Bye

CA. BIJENDER KR. BANSAL (ACA, B.COM) (8143 Points)
Replied 18 August 2010

IF COMPANY MAKE GROUP MEDICLAIM INSURANCE COMPANY FOR EMPLOYEES, THEN SUCH MEDICLAIM EXP IS NOT TAXABLE IN HAND OF EMPLOYEE AND COMPANY IS GETTING DEDUCTION AGAISNT IT AS A EXPENSE

IN YOUR CASE , EMPLOYEE HAS TAKEN MEDICLAIM POLICY INDIVIDUALLY IN HIS NAME. AND COMPANY IS REMIBURSING THIS . THIS WILL BE TAXABLE IN HAND OF EMPLOYEE AND EMPLOYEE WILL BE ELIGIBLE FOR CLAIMING DEDUCTION FOR IT .

IE. NO IMPACT ON TOTAL INCOME, FIRST ADD IN SALARY AS PERQ THEN CLAIM DEDUCTION U/S 80D.

3 Like

CA Narendra Gupta (CA ) (256 Points)
Replied 18 August 2010

Hi suraj , I agree with CA Bijender.

Kalpesh Chauhan, (Tax Assistant (Accounting Technician CA FINAL CS PROF. PROG. B.Com)) (8310 Points)
Replied 18 August 2010

Originally posted by : CA. BIJENDER KR. BANSAL
	IF COMPANY MAKE GROUP MEDICLAIM INSURANCE COMPANY FOR EMPLOYEES, THEN SUCH MEDICLAIM EXP IS NOT TAXABLE IN HAND OF EMPLOYEE AND COMPANY IS GETTING DEDUCTION AGAISNT IT AS A EXPENSE IN YOUR CASE , EMPLOYEE HAS TAKEN MEDICLAIM POLICY INDIVIDUALLY IN HIS NAME. AND COMPANY IS REMIBURSING THIS . THIS WILL BE TAXABLE IN HAND OF EMPLOYEE AND EMPLOYEE WILL BE ELIGIBLE FOR CLAIMING DEDUCTION FOR IT . IE. NO IMPACT ON TOTAL INCOME, FIRST ADD IN SALARY AS PERQ THEN CLAIM DEDUCTION U/S 80D.

1 Like

Manoj BG (Tax Professional and in Service) (1795 Points)
Replied 18 August 2010

Hi Dear,

Reimbursement of medicalim premium will be taxable under section 17(4) of the income tax act.

Further, medicalim insurance paid by u would be eligible for deduction under section 80D. Thus no impact on Net Taxable Income.

Regards,

Manoj

Palash Gupta (Student...Hoping to pass Inter) (892 Points)
Replied 18 August 2010

Originally posted by : Manoj B. Gavali
	Hi Dear, Reimbursement of medicalim premium will be taxable under section 17(4) of the income tax act. Further, medicalim insurance paid by u would be eligible for deduction under section 80D. Thus no impact on Net Taxable Income. Regards, Manoj

agree nwith manoj totally.eligibility for deduction is that person should be individual or HUF and only deduction upto 15000/- can be claimed..

CA LOVELY ARORA (C.A. B.Com (H) Graduate) (2151 Points)
Replied 18 August 2010

agree with Mr. Manoj and Bijender.........

CA kuldeep kothari (own practice) (375 Points)
Replied 19 August 2010

Originally posted by : CA. BIJENDER KR. BANSAL
	IF COMPANY MAKE GROUP MEDICLAIM INSURANCE COMPANY FOR EMPLOYEES, THEN SUCH MEDICLAIM EXP IS NOT TAXABLE IN HAND OF EMPLOYEE AND COMPANY IS GETTING DEDUCTION AGAISNT IT AS A EXPENSE IN YOUR CASE , EMPLOYEE HAS TAKEN MEDICLAIM POLICY INDIVIDUALLY IN HIS NAME. AND COMPANY IS REMIBURSING THIS . THIS WILL BE TAXABLE IN HAND OF EMPLOYEE AND EMPLOYEE WILL BE ELIGIBLE FOR CLAIMING DEDUCTION FOR IT . IE. NO IMPACT ON TOTAL INCOME, FIRST ADD IN SALARY AS PERQ THEN CLAIM DEDUCTION U/S 80D.

agreed with ca bijender