my mother is suffering from chronic kidney disease and is on peritoneal dialysis. my employer gives me the reimbursement for the medicines used in the dialysis procedure. the amount reimbursed was around 350000 ( three lakh fifty thousand). the salary section has included this amount in my gross annual income and taxed me heavily. please clarify if the reimbursed amount will be considered as my income ?. how can the reimbursed amount (which is the actual amount incurred) be taxed?
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Medical reimbursement is considered as income?
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on behalf of my best knowledge, Medical reimbursement is fully taxable , hence the 2018-19 Budget reintroduced, standard deduction of 40K. And another provision is to get it as refund, as the decese is chronic decese like, Bone cancer, kidney failire, ect . Better to consult finance expert. I am just a govt teacher from andhra pradesh.. Thank you...
Yes, its taxable.
My employer has added the reimbursed amount in my gross salary. So effectively it's my income from salary for that financial year. Does it also mean that the reimbursment is zero for that financial year?
Yes, the medical reimbursement of 350000 is fully taxable, and it is adding your gross salary , you can claim standard deduction of 40000 which provided on behalf of medical reimbursement and transport allowances.
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