Sir, I received RS.45000 as reimbursement on my wife treatment. My employer after deducting TDS @ 10% u/s 194c paid to me. I am a Govt.employee.
My query is whether this taxable or exempted.If exempted , which sectioni mention in ITR 1.
Thanks in advance.
Section 17(2) of the Income-tax Act, 1961, provides that any reimbursement against medical expenses to an employee by an employer up to R15,000 in a year is exempt from tax, irrespective of whether it has been claimed in part or full. However, only the amount for which proper bills are submitted or R15,000, whichever is less, will be considered for exemption.
There is no upper limit for exemption in the case of reimbursements for medical expenditure incurred at a hospital or clinic maintained by the employer itself, or maintained by the government, local authority or a hospital approved by the government for its employees. Further, reimbursements of medical expenditure incurred at a hospital approved by the chief commissioner of income tax is entirely tax exempt.
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