No taxable income, but medical reimbursement exceeds 15000

Tax queries 964 views 7 replies

brar

CFA

32 Points Posted on 11 March 2014

My senior citizen Mom received medical reimbursement of 80000. Her total income after adding this 80000 is below 2.5 lacs. Does she have to file returns? I assume this is under "other sources " and taxable at 15%, amount is 65000. Right?

Replies (7)

Manoj Mehta

Head Of Department (Accounts & Finance)

1479 Points Posted on 11 March 2014

Dear brar in case of senior citizen slab is 2.5lakh so if your mum is below that then not to worry for filling of income tax return. But if any tds is deducted then file your return to claim the refund of the same.

brar

CFA

32 Points Posted on 11 March 2014

Thanks. I have read on many sites that med reimb is treated differently. And taxed at 15% irrespective of tax slab, if amount is more than 15000. Can you confirm your advice?

Originally posted by : Manoj Mehta
	Dear brar in case of senior citizen slab is 2.5lakh so if your mum is below that then not to worry for filling of income tax return. But if any tds is deducted then file your return to claim the refund of the same.

brar

CFA

32 Points Posted on 11 March 2014

Thanks. I have read on many sites that med reimb is treated differently. And taxed at 15% irrespective of tax slab, if amount is more than 15000. Can you confirm your advice?

Originally posted by : Manoj Mehta
	Dear brar in case of senior citizen slab is 2.5lakh so if your mum is below that then not to worry for filling of income tax return. But if any tds is deducted then file your return to claim the refund of the same.

Manoj Mehta

Head Of Department (Accounts & Finance)

1479 Points Posted on 11 March 2014

Please post link here.

Manoj Mehta

Head Of Department (Accounts & Finance)

1479 Points Posted on 11 March 2014

Dear brar , firstly when we go for tax payments we check the limits and slabs and if the assessee is below the same no such thing can be charged. So I m sure in your case your tax amount will be nill. But I would like to see the same about which said above. So please paste link here. regards

Guest

You mom is a senior citizen. Did she receive the med reimbursement from her employer or medical insurance amount?

brar

CFA

32 Points Posted on 12 March 2014

Mehtabhai, I think I saw info about the 15% tax at the IT site also. but, I have been unable to find the relevant link. Probably it related to previous year but I am certain I read it in more than 1 place.

but, I'll abide by your advice on this.

Panditji: from ex employer. this was a one off payment/ aid to all retiries of ongc. doctor prescripttion was provided. seems no tds was cut.