Medical Reimbursement

My mother is on dialysis suffering from chronic kidney disease and my employer Reimbursed about Rs 3 lakh towards the medical expenses incurred by me and at the same time included that amount in my gross annual salary. So if my gross salary is 8 lakh per annum, form 16 states it to be 11 lakhs and I was taxed according to this income of 11 lakh (8+3). Does this also mean that the medical reimbursment I received is effectively zero and I can claim full deduction applicable for treatment of chronic diseases???

Replies (3)
Quick Summary
This discussion explores the tax implications of receiving medical reimbursement from an employer. The user received a significant reimbursement for their mother's dialysis treatment, which was then added to their gross salary, increasing their taxable income. The core question is whether this reimbursement, effectively taxed as salary, can still be claimed as a deduction for chronic disease treatment expenses.

Medical reimbursement and transport allowance is now replaced with the standard deduction of Rs.50,000 as per Union budget 2019 which will be applicable for P. Y. 2091-20.

This answer is so obvious. My query is subtle. If reimbursement is included in my gross salary logically it becomes my salary and the reimbursement in absolute terms becomes zero. That is no reimbursement is given by my employer. So I can claim full 1 lakh deduction for amount spent on  treatment of chronic disease for a person over 60 years ????

This answer is so obvious. My query is subtle. If reimbursement is included in my gross salary logically it becomes my salary and the reimbursement in absolute terms becomes zero. That is no reimbursement is given by my employer. So I can claim full 1 lakh deduction for amount spent on  treatment of chronic disease for a person over 60 years ????

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