Medical reimbursement - salary

If the employer reimburses premium paid for insurance taken by the employee, will it come under the cap of Rs.15000 for medical reimbursements? Or is the Rs.15000 limit only for hospital bills submitted by employee?

Replies (11)

Medical insurance paid u/s 80D maximum of Rs 15000 is tax free.

in the case of a  Senior citizen,  it is Rs. 20,000/-

Dear Friend,

The definition of Perquisite specifically excludes the Premium of Mediclaim Policy....

So the same will be exempt without falling in the limit of Rs. 15,000...

Hai.

Premium paid by employer are part of Salary of employee. It included Employee's salary,80 C exemption available.

Medical Reimbursement just like medical expenses bear by employer,its limit are Rs. 15000/-.If employee present Bills of Medical Expense then Deduction upto  Rs. 15,000/- allowed,

The Exemption limit for medical is 15000 PA

Medical insurance premium is different and not included under Medical Reimbursement of Rs. 15,000/-

ya exemption of Rs 15000 will get

Health insurance premia cannot be said as Medical reimbursement i.e for expenditure on medical by employee.The former has to be paid by EMPLOYEE & get deduction u/s 80D whereas the later will be exempted(not deduction) upto a limit of Rs 15000/- subject to production of bills.

Dear Friend,

Medical reimbursement (rs 15,000 generally forming part of CTC) is totally different from Reimbursement of Insurance premium.

if Employer reimburses the insurance premium on policy taken by the employee, then that will be the obligation of the employee met by the employer and hence to be considered as perquisite and taxed accordingly.

Medical  reimbursement is totally different component, generally forming part of CTC.

Thanks,

Venkat.

Hi,

 

Section 17 of the IT Act, exempts from tax :-

c) Premium paid by the employer in respect of approved medical insurance taken for his employees or reimbursement of insurance premium to employees for medical insurance for themselves/family members.

follow the link for detail

However Rs 15000/- will not be get effected it will still be availabe.

https://www.incometaxindia.gov.in/publications/1_Compute_Your_Salary_Income/1_Income_from_salary.asp#WHAT%20ARE%20THE%20CONDITIONS%20FOR%20MEDICAL%20FACILITIES%20TO%20QUALIFY%20AS%20TAX%20FREE%20PERQUISITES?

Exemption will not get

Exemption is only when hospital bills are reimburse.

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