Pon1965
Construction
Jkct15
Deputy Manager - Hr
Jitendersyadav
Hr Manager
+1 Other

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Dear Friends,
When a company reimburses it employees for medical expenses incurred upto 50% of the basic salary or Maximum of Rs.15000/-. Can we allow reimbursement for health drinks, cleansing lotion, Anti-dandruff, SPF spray etc.
Please give me your views.
Regards
Nandita

Hi Maximum of Rs.15000 per year is allowable under the medical reimbursement and it can be used only on the medical grounds.
The items mentioned are not allowed. It is not medical reimbursement but medical allowance. Medical allowance is tax exempted upto 15000/- p.a subject to production of bills whereas medical reimbursements are normally borne by the employers.
pon

Thank you, Christopher. But I need some more clarity,Can we allow reimbursement for health drinks, cleansing lotion, Anti-dandruff, SPF spray etc. Do these come under medicines.
Nandita
attribution https://www.citehr.com/483889-medica...#ixzz2sVY87UeT

Hi
Only medical items are covered and rest can not be included. You can directly convey this message to all employees who have this benefit. Any non-medical items purchased will be under the gamut of tax.

Hi,
Medical means the medicine/ drugs used to heal any illness. In this case only medicine, doctor fees, hospital fee can be covered under medical reimbursement scheme, while the item mentioned by you are cosmetic, energy drink, diet food etc, which are not the part of Medical.
Another thing is that our friend PON commented that "Medical allowance is tax exempted upto 15000/- p.a subject to production of bills whereas medical reimbursements are normally borne by the employers" while Medical allowance & medical reimbursement are two separate entity.
Medical Allowance is fully taxable & Medical reimbursement is tax free upto Rs. 15000/- per Annam, beyond Rs. 15000/- it would be taxable.
Rgds/Jitender

Thank you Jitender, that was helpful. I wanted to make sure before I reject any bills. Yes what you say is right Medical Reimbursement is tax fee where as Medical allowance is taxable. Nandita
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