Medical allowance

ITR 1261 views 3 replies

One of our employees in our company is been paid a Fixed Medical Allowance.He does not hold any medical insurance policy neither in his name nor in the name of his parents,but he has incurred medical expenses for his parents and has paid the amount of medical expenses in cash.

Since a Fixed Medical Allowance is fully taxable and above that the expenses are paid in cash and adding to that there is no reimbursement from the employer due to the presence of Fixed Medical Allowance being paid to him per month.

Can he avail a deduction for above mentioned expenses u/s 80 D ? If no,kindly let me know is there any other option available to avial a deduction ?

 

Replies (3)

Hi,

U/s 80D you can claim exemption only for Medical Premium paid.

However he can submit Medical Exp Bills against fixed amount paid to him & to the extent of bills submitted he can avail exemption in Form 16.

 

Rgds//Vaibhav
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So all you want to say is that it does not have bearing with the mode of payment of the hospital bills paid in cash as well.So the deduction will be admissible as against fixed medical allowance paid to him.In that case what will be the section under which the deduction is admissible ?

Hi

Under S/17(2) upto Rs. 15000 medical reimbursement is exempred perk.

Bills to be produced & same has to be in the name of employee or his relatives can also do.

Payment in cash is allowed.

Rgds//Vaibhav

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