Human Resources
C-level Recruitments & Hr Consulting
Hr Professional
Credit Analyst
Hr - Recruitment Specialist
Lead Analyst
Sujata Swamy
Team Head - Hr
Business Development Manager
Chandru GC
+3 Others

Medical Allowances is tax free till 15000/- p.a. Above which it becomes taxable.
What about medical reimbursements given.Is there a limit for that too.what are the general rule for reimbursing medical benefits.
27th May 2005 From India,
if you are following CTC ( cost to company ) basis then there is nothing else to pay, thus rendering the need to calculate reimbursments useless.
Please Note to use the Medical allowance you will have to submit actual bills for reimbursements. these reimbursements are subject to a maximum of Rs:15,000 for tax saving purposes.
SO if you reproduce on demand bills worth Rs1000/- only then your Medical reimbursement will be for Rs1000 only.
hope this info helped you understand it better.
27th May 2005 From India, Mumbai
So does it mean that medical allowances and medical reimbursements are one and the same or for that matter, similar?
27th May 2005 From India,
The allowance could be Rs:15,000
if you claim full (or more ) by showing cash receipts of the same then the value of reimbursements is subject to a maximum of Rs:15,000 only not more, but less if value of bills shown is less.
Allowance = maximum limit
reimbursements = what is claimed actually by showing proof via bills.
hope this clears the concept.
feel free to ask more :p) :twisted:
30th May 2005 From India, Mumbai
Dear Joan

Medical allowance is taxable. Under the income tax any amount paid as allowance is considered as a part of salary and hence it becomes taxable irrespective whether it is 15000.00 or less or more.

Medical reimbursement upto of Rs.15000.00 per year made by an employer to employee are exempted from payment of income tax. For this employee has to claim this reimbursement.

For claiming reimbursement of expenses, every employee is required to give undertaking or to submit bills to support the claim.

These expenses may be in shape of doctor's consultation fee, purchase of medicines or payment of fee / charges towards pathological test. The expenses can be on him / her self or other dependents of the family including father, mother, or dependent brother sister.

To claim reimbursement employee must keep the support with him / her even though the same has not been asked for by the employer. Onus to prove is with the employee only because h/she is availing tax benefits from income tax authorities against these reimbursement.

Hence again reimbursement and allowance are not the same things. Reimbursement is a receipt against the expenses already paid by an individual and allowance is an amount which is directly a part of monthly salary.


Anil Anand
29th September 2005 From India, New Delhi
Just wanted to check whether medical expenses on Opticals, Dentals and ortho allowed under medical reimbursement Vineet
30th September 2005
Dear Vineet
Expenses incurred by an employee for the purchase of Spectacles to correct the vision to an extent defeats the purposes of medical reimbursement. Yes the Charges paid to doctor (Opthalomogist) for medically evaluating your present eye vision and advise for use of correct power of lenses , is reimbursable and is also exempt from incometax.
Making reimbursement is discretion and depends upon the policy of the management , any company is free to reimburse any expenses. But for claiming exemption from Income Tax the expenses must meet the objective of the act.
Expenses incurred for availing ortho or dental services are fully reimbursable as per policy of the company and are also exempt from Income Tax upto the limit of Rs.15000.00 against medical procedures / treatment during the year.
Anil Anand
30th September 2005 From India, New Delhi
So is it a common practice for employers to pay their employees that don't use the company's health plan. It seems to me that all or part of what an employer would spend on insurance should be given to the employee. The employee shouldn't necessarily lose the benefit just because a spouse has a better insurance or something like that.
15th March 2006 From United States, Newton
Hi Anil,
I recently joined CiteHr. Was reading the conversation regarding Medical Allowance and Medical Reimbursement.
Got my concepts clear now about it. My company wants to introduce Medical Reimbursement as a part of the CTC.\, I need to prepare documentation to introduce it to the company.
Could you help me out incase you have any write up on the same
Margaret. :)
25th May 2006 From India, Mumbai
Dear All,
Major difference between medical allowance and medical reimbursement as follows:-
Medical Allowance:
1. Its part of the individual salary.
2. It becomes non-taxable on production of actual bills upto a maximum of Rs.15000.
3. If you are not avaialbel to produce actual bills then company actually pays you medical allowance but it becomes taxable.
Medical Reimbursement:
1.Available only on production of actual bills.
2.Company not liable to pay if the bills are not produced.
25th May 2006
The only difference between MA and MR is MA is taxable and MR is tax exempted for the bills given and for the balance it will be taxable.
For example MR for a Month is 1250 and if an employee produces bill for 1000 rs towards May'06 Salary he will be paid only 1000 and the balance 250 will be carried forward to next month. Next month he can produce bill for 1500 and can get the salary. If an employee doesn't provide any bill he will not be getting on that month.
Hope this would have given some clarity.
J A Xavier
Human Resources
25th May 2006 From India, Madras
Hi all,
I am an MBA student , Specializing in HR.
Your inputs were of great help to me. Now I can understand why my professor always takes medical allwance as 15000, while explaining tax benefits.
26th May 2006 From United States, Chicago
I agree with Anil Anand.
However, some companies have a practice of giving unlimited medical reimbursement (supported by proofs), especially to senior employees. In this case, any amount beyond Rs.15, 000/- is considered as an allowance and is fully taxable.
Alternately, if one has been promised as a part of his / her CTC, Rs.15,000/- as Medical reimbursement and he / she is able to provide proofs for an amount less than Rs.15,000/-, than the balance unsupported amount is payable to the employee at the end of the financial year as a taxable component.
Hope this helps you.
30th May 2006
Hi , Is there any supporting rule like Income tax or some other by which we justify the Medical reimbursment of doctor consultation.
21st February 2010 From India, Mumbai
1) What does Medical Allowances covers?
a) like 15,000 rs Mediclam bills
15,000 rs medical stores bills
without any medical store bills or mediclaim bill 15,000 rs is exemted.
b) If Yes, i have to show bill any one bills of 15,000 rs and then only 15,000rs will become tax free.
Than my question is if i dont come under tax bracket do i have to still show the bills?
2) Do company deducts 1250rs every month as a Medical reimbursements and only give you back when you give bills of 1250*12?
3) What is Medical reimbursements? does it comes after medical allowance like
(assuming that In Medical Allowances I have shown bills of 15,000rs of medical store and my 15,000 became tax free.
Now If i show a bill of 15,000rs again in medical reimbursements too. then more 15,000rs will be exemted)
4) If i dont come under tax bracket does company deducts 1250*12 rs from you account and refunds you when you give bills?
6th June 2013 From India
Good Morning,
For purpose of Medical Reimbursement (Rs.15000 pa), I require to know which types of Bills are exempt from Tax. If anyone has created a list - would they kindly share it with us?
Specifically would like to check for Dental treatment Bills for Silver fillings and Bills for purchase of Spectacles worth more than Rs.2000/-
Thank in advance ..
Warm regards,
Deena Jagasia
7th April 2014 From India, Mumbai
Kindly clarify my query -
I receive 1250/- p.m. as Medical Allowance with my salary. When I tried submitting my medical store bills to my company, they refused to accept those. I was told to claim the exemption at the time of uploading my return.
How am I supposed to do the same...?
11th April 2014 From India, Visakhapatnam
Can any one help me what is the medical allowance amount for Financial Year 2015-16.
and The medical allowance + Health insurance both are same or not. totally i'm confusion. if it's different then let me know how much amount. some body is saying that its increased from 15 k to 25k PA. and some body is saying that no no it's 15k only.
4th June 2015 From India, Bangalore
Add Reply Start A New Discussion

Cite.Co - is a repository of information created by your industry peers and experienced seniors. Register Here and help by adding your inputs to this topic/query page.
Prime Sponsor: TALENTEDGE - Certification Courses for career growth from top institutes like IIM / XLRI direct to device (online digital learning)

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2019 Cite.Co™