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Maternity Expenses

Tax planning 18208 views 3 replies

Dear All,


I need a small clarification.  One of our employee incurred his wife's maternity expenses during the financial year.  He wants to reimburse that amount.  Is there any tax exemption for reimbursement of maternity expenses? If so, what is the limit ? Please give suggestion with IT sections ? It's very urgent. Please help me.

Regards

Deexitulu.P

Replies (3)
Originally posted by : Deexitulu

Dear All,


I need a small clarification.  One of our employee incurred his wife's maternity expenses during the financial year.  He wants to reimburse that amount.  Is there any tax exemption for reimbursement of maternity expenses? If so, what is the limit ? Please give suggestion with IT sections ? It's very urgent. Please help me.

Regards

Deexitulu.P

Where an Indian resident incurs any expenditure for the medical treatment of specified disease or ailment for himself or a dependent relative, he is allowed a deduction of an amount actually incurred subject to maximum of Rs. 40,000/-. If he or any dependent relative is senior citizen, the deduction can go upto Rs. 60,000. The amount of deduction is to be determined after reducing the amount received under medical insurance (Sec. 80DDB).

 

unfortunately maternity is not covered u/s 11DD for the purpose. hence fully taxable 

Originally posted by : U S Sharma




Originally posted by : Deexitulu






Dear All,


I need a small clarification.  One of our employee incurred his wife's maternity expenses during the financial year.  He wants to reimburse that amount.  Is there any tax exemption for reimbursement of maternity expenses? If so, what is the limit ? Please give suggestion with IT sections ? It's very urgent. Please help me.

Regards

Deexitulu.P






Where an Indian resident incurs any expenditure for the medical treatment of specified disease or ailment for himself or a dependent relative, he is allowed a deduction of an amount actually incurred subject to maximum of Rs. 40,000/-. If he or any dependent relative is senior citizen, the deduction can go upto Rs. 60,000. The amount of deduction is to be determined after reducing the amount received under medical insurance (Sec. 80DDB).

 

unfortunately maternity is not covered u/s 11DD for the purpose. hence fully taxable 

Agreed With the reply.

Such reimbursement shall be Taxable.

It is Income Tax Rule 11DD and not Section 11DD.


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