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Maternity Expenses

Deexitulu (Accounts Manager) (28 Points)

02 February 2011

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

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3 Replies

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 05 February 2011

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

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CA Himanshu Bansal (Risk Manager) (2345 Points)
Replied 06 February 2011

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