Reimbursement of Medical Expenses

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Retired Government employees are authorised for cashless treatment from authorised Hospitals. In emergency if one could not get treatment from authorised Hospitals, he can avail treatment from non-empanelled Hospitals and the cost of treatment is reimbursed to the individual. My query is whether such reimbursed amount will be taxable or not. Experts comment is requested. Thanks in advance.
Replies (5)

If it is reimbursed by insurance company, it will be fully taxexempt.

But if reimbursed by employer, it is tax-exempt upto Rs.15,000/-

Thank you very much sir. Actually it is a case of entitlement to central Government Pensioners. We are authorised for free treatment under CGHS (Central Govt Employees Health Scheme) and certain Hospitals are authorised to provide free treatment. If the pensioner could not avail this facility due to various reasons, he can get treatment from other Hospitals and the expenses incurred by the pensioner for such treatment in non-empanelled Hospitals are reimbursed by CGHS. So in such a case the amount reimbursed by CGHS is taxable or not. Please post a comment.

If the CGHS is sort of insurance scheme. then it should be fully exempt. Though premium may be paid by Government.

Sir it pertains to admission in Hospital in emergency due to serious illness.

If the treatment is taken from Government approved hospitals; as per IT act, the reimbursement given by employer is fully tax exempt.


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