Medical Reimbursement

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MohanaSundaram

Finance Executive

34 Points Posted on 23 June 2009

Can company reimburse bills pertaining to the previous financial year, and consider this as part of this year's limit.

Medical Reimbursement upto Rs.15000 in each financial year is exempt from tax. Can the company reimburse bills pertaining to prior period (i.e. in Apri can the company reimburse bills pertaining to February or March of the previous financial year) and consider this reimbursement as part of this year's exemption limit of Rs.15,000/-

Will this change if the bill pertained to December or November instead of February or March

Replies (3)

RAMANJU

here to updating the knowledge

482 Points Posted on 23 June 2009

This is not possible as each year is different having a separate Finance Act. Think for a while, if the provisions of medical reimbursement removed in the next finance act, what will be your reaction. This will not be allowed in my opinion.

RAMANJU

here to updating the knowledge

482 Points Posted on 23 June 2009

If the employer is paying the amount towards reimbursement but the bills are not submitted i.e it can be taken as medical allowance and it fully charged to tax in the hands of employees.

MohanaSundaram

Finance Executive

34 Points Posted on 23 June 2009

In many companies there is cut of date by which medical reimbursement bills have to be submitted for payroll reimbursement.

If March 15th is the cut off for submission of bills, the employee will forced to submit the bills for the period Mar 16th to Mar 31st in the April cycle of reimbursement.

Does this mean that the bills pertaining to Mar 16th to Mar 31st cannot be reckoned for computation of this year's tax free medical reimbursement limit.