I am fresher and I have recently picked a job in a MNC. Since I am new to the corporate world I have problems in understanding my salary structure.
In my pay structure the HR has included Medical Reimbursement of 15000/annum in my Fixed Base Pay and then under Benefits/Earnings in Kind they have included Medical Insurance of Rs.13829/annum.
I want to know
1. What is the difference between the two?
2. Will I get these amount in hand or not?
3. Are they taxable?
Waiting for a quick reply.
From India, Jammu
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Vice President - Hr/hcm/people Success
ratnakaram bhargaviHi Ambitiousgrad,
Generally Companies will have a tie up with Medical Insurance(Insurance group). There will be a premium amount per annum based on Group(self/Self+spouse+Kids/Self+Spouse+Kids+Parents). So your company has claimed an Insurance for you and included the amount in your CTC. So the amount has been paid on behalf of you and you can avail amount of SUM Rupees on your medical treatments on injuries accidents etc... and that is Tax exempted only. Now get clarification among the following questions from your HR department. Listed hospitals will be there for your Insurance. if you gone treatment with unlisted Hospitals, there ypu can submit the bills and reimburse amount on which you spent.
1. What is Sum Insured amount.
2. Insurance Group details
3. Who are liable under this MI
4. List of Hospitals
5. Claiming/reimburse details procedure
From India, Hyderabad
Actually medical reimbursement is a component of salary, basically to save tax the company will do so.Because 15K is the maximum limit as per income tax . You will produce bill for that to the company, without of bill you can not received that money from company, On absence of medical bills you will received 15K after deduction of tax.
Mediclaim insurance is like insurance of you and your dependents (if you add them). the premium of Rs. 13,829/- which you are paying it would add your CTC, no benefit you will get. It is like a facility which company is giving to you.
To save tax company will do so,
From India, Ghaziabad
Medical Reimbursement :- It is an amount payable to you either as an monthly amount or a lump sum payment or against production of medical expenses bill. The amount is taxable untill and unless you produce the bills of expenses.
Medical Insurance :- It is like any other mediclaim insurance / policy and is governed by the policies of the insurers. As rightly pointed out by Ratnakaram you will have to talk to your HR and get the details of the policy. The amount is not paid to you and is not taxable.
From India, Mumbai
CHENVASIThe medical expense for injuries occurring during or carrying out job at work is considered as injury due to occupation and will be entirely to be born by the company if the employee is not covered by ESI. If the employee is covered by the ESI the individual will be provided treatment and also rehabilitation if required by the ESI.
If the employees are above the ESI slab the industry take insurance for the employees and the entire expense will be taken care by the insurance claim.
From India, Chennai
Please find the details below.
Medical Allowance is a fixed monthly allowance which forms a part of Salary. It is paid as a fixed amount which is determined as per the company’s policy where an individual is employed and it has no relevance with the medical expenses incurred. Medical Allowance is added in taxable income under the head “Salaries” and it is fully taxable.
Medical Reimbursement is a reimbursement of medical expenses incurred by the employee. Employee claim this reimbursement by submitting bills, cash memos to employer and after verification employer reimburse the expenses upto a certain limit. This reimbursement is not pre-determined or fixed. Medical Reimbursement upto Rs. 15000 p.a. is exempt from Income Tax.
Mediclaim usually refer to Medical Insurance Premium or Health Insurance Premium. In other words, the premium paid towards policy taken on the health of the self, spouse, parents or dependent children can be claimed as deduction u/s 80D. But, the payment should be made by any mode, other than in cash to claim the deduction.
Deduction up to Rs. 15000/- is allowed in case of self and dependent children, an additional deduction of Rs.15000/- is allowed for premium paid towards the medical insurance of parents, that is, a total deduction of Rs. 30000/- can be claimed towards medical insurance premium of self, children and parents.
Further, in case the premium is paid towards any senior citizen (above 65 years), an additional deduction of Rs. 5000/- shall be allowed, that is, in case of senior citizens the above limit of 15,000/- shall be upgraded to Rs. 20,000/- .
More @ Taxmantra
From India, Bangalore