Taxability of medical allowance

Tax planning 12090 views 11 replies

Hi,

I have claimed monthly medical allowance option from company without producing bills where comapny deducts tax and reimburses me the amount monthly.

Can I claim exemption of Rs 15,000 while filing of return if I have bills of Rs 15,000 for the year or Rs 15,000 will be taxable ?

Replies (11)

u cn claim 15000/- as deduction u/s 80D, if u hv bills. there is no problem at all in claiming extra deduction in ITR which ws not shown in form 16.

There is a huge confusion all around. Many say one can only claim exemption if bills are submitted to employer.

Medical allowance is taxable. Medical reimbursement (you providing medical bills) is exempt upto Rs. 15,000/-

By paying Mediclaim Insurance Premium you can claim Deduction u/s.80D upto Rs.15,000/- (otherthan Senior Citizen).

If you want claim Reimbursement of Medical Bills you have to submit the bills to the employer.

as my other frnds says that it is mandatory to submit bills to the employer. dear frnds, i want to add few more words in it.

medical bills are required to be submited, if deduction is to be claimed in form 16. if u r claiming it in ITR not in form 16, it is not mandatory to submit it to employer. "it will be submitted to jurisditional AO, if demanded at the time of scrutiny."

dera anuj ji, u hv forgot to claim it in form 16 and to submit the bills to employer, u cn further claim it in filing ITR. there is no problem at all in it.

Fixed allowances are always taxable as full amount. If u have bills u can claim dedutions u/s 80D for an amount of Rs.15,000/-

So should I conclude that I can deduct 15000 from my income at the time of filing return ?

Yes,off course,you may adf this claim while filing return.

Dear Friend

First of all confirm that, is it reimbursement i.e. treated as perquisits ( recived occassionally)  or allowance (i.e. received on fix pay basis). if it is fixed pay basis( allowance)  then no deduction is available. Otherwise ( in case of perquisits ) you can claim Deduction.

Hi, as at the end of year, you didn't submit proof of medical expense then they will deduct TDS on that amount. let us take an example as Co. tell to projected deduction(80c/80d) and if you tell him around Rs.100000 is your investment for the year, but if you fails to provide any proof to that at the end of the year, then they will deduct TDS on that amount, so you have to provide proff of medical bill at the eand of the year, as mention by your co. to submit all details.

Hi All,

while filing the ITR for A.Y 2016-17 where i will mention that 15000 amount for medical bills ..As far as i know section 80D is for medical premium not medical bill.

Pleas suggest. 


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