Medical reimburseement

 

Reimbursement of medical expenses actually incurred by an employee for his medical treatment or the treatment of any member of his family upto Rs. 15,000 per annum is not treated as a taxable perquisite as per Clause (v) of the Proviso to Section 17 (2) of the Income Tax Act. Family is defined to mean Spouse or Children of the Individual or any of dependant relatives being Parents, Brother or Sister. Note there is no requirement for Spouse or Children to be dependant on the individual, but Parents, Brother or Sister should be dependant on the individual. Thus Medical Expenses Reimbursement of expense actually incurred by an employee upto Rs. 15,000 per year is completely tax free.