Regarding income tax rebate on reimbursement of indoor(hospitilisation) medical bill

Dear Sir, I have a query regarding income tax exemption Sec 17(2)(ii)(b).

Sir i am working in BSNL. BSNL has tied up with many hospitals on cashless basis for treatment of its employees and their family member. Sir my wife has been admitted for 3 days in hospital which is empanelled in BSNL. There is legal agreement between BSNL and Hospital for treatment on cashless basis. But due to some pendency of bill payment hospital refused to give us cashless facility. So after consultation with employer i have paid all bills as per CGHS rates to the hospital and claimed the same. 

Now i want to ask you that whether the reimbursed amount is taxable or not.

Income Tax Deptt. has issued a certificate under section 17(2)ii(b) to the hospital. 

Kindly guide me on the same.

Arjun Yadav

7060758989  

 

Replies (2)

Medical reimbursements are taxable from 01.04.2018

You may be right Mam but what about this article.

 

Tax implication in case private hospital is approved by Chief Commissioner:-

If Private Hospital is approved by the Chief Commissioner of Income Tax, having regard to the prescribed guidelines for the purposes of medical treatment, any sum paid by the employer in respect of any expenditure actually incurred by the employee on his medical treatment or treatment of any member of his family is completely exempt from income tax under Clause (ii) of the proviso to Section 17 (2) of the I.T. Act.

Hence, proper planning should be adopted for getting an employee or a member of his family treated at a private hospital which is approved by the Chief Commissioner.

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