How to calculate medical reimbursement and taxable & non taxable amount? - CiteHR
Amitshah
Business Consultant - Hr
Amitmhrm
Hr Practices
Singinscorp
Engineer - Telecom
Ashok Ingle
Payroll Asst.
Mukesh889
Payroll & Accounts
Leenakhanolkar
Service Industry
+6 Others

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hi How to calculating medical reimbursement and taxable & non taxable amount ? pls provide details example
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Dear Ashok,
It depends on the company policy. Actual medical reimbursement for tax exemption is Rs. 1250.00 pm. So if the medical allowance is more than Rs. 1250.00, the person will get exemption on Rs. 1250.00. Reimbursement means, for claiming the allowance one should produce the bills of the same.
If person is not providing the bills of medical and are taking the allowance then the entire amount would be taxable.
Thanks,
Amit Shah
Dear Ashok, Very true defined by Mr. Amit.. its rupees 1250/- per month of medical reimbursement which is exempted under the tax rules.. Amit Seth.
Let's start by using the right nomenclature with reference to the medical component of your salary.

It should be termed Medical Reimbursement, not Medical Allowance. This is because allowance per se is taxable in all cases, except those specifically exempted.

For general medical reimbursement, Rs 15,000 is the maximum tax break that an individual can avail of against actual supporting documents.

Let's say that, based on your company rules, you are eligible for medical reimbursement of a month's basic salary. Let's further assume that this is Rs 30,000.

So the amount you are eligible for reimbursement is Rs 30,000.

Now there are two aspects to this situation: you need to submit at least Rs 30,000 worth of medical bills to claim the eligible reimbursement from your employer.

Second, the tax break would only be available for Rs 15,000, though you have provided bills for Rs 30,000.

Note :

If an employee receives some money for his medical treatment or the treatment of any member of his family or any of his dependant relatives then a sum up to Rs. 15,000 p.a. is not treated as a taxable perquisite as per Clause (b) of the provision to Section 17 (2) of the I.TA. Act. This exemption is enjoyed by the employee only if the expenditure is actually incurred on his medical treatment or for treatment of any member of the family or a dependant relative. It may be noted here that there is no condition that the medical treatment should be at any of the approved hospitals. It could be at any place and from any type of doctor belonging to Allopathic, Ayurvedic, Unani or Naturopathy system of medicine. If medical allowance is received then it would be fully taxable.

In income tax act no where is mentioned the Monthly Limit.
Medical reimbursement, you will get on declaration basis. Suppose you have declared 15000/- in a year and you have claimed 10000/- reimbursement in a year through medical bills.
You will get the Balance Amount (15000-10000=5000) with your March salary and that amount will be taxable.
I short the amount which you will get with your salary against medical that will be taxable and which amout you get throuhg reimbursement up to 15000/- is non taxable.
Is there any tax deduction in the Medical Remimbursement claim amount? In my company deducted the tax from my Medical Remimbursement claim amount. Please any one of help me out.
Whether dental treatment bills are eligible for claiming exemption of medical reimbursement?
Medical reiumbursement should be given in the month of march salary or it is based on the companys policy?
if the company decides to give medical reiumbursement in the month of december then its ok?
plz help me in this regards,
Roshan.
Hi anybody have TDS/TCS monthly challan (excel format). If you have this pls share it. TAMIL...
Hi Frends,
If I claim Medical Reimbursement, I have to produce medical bills for that, right.
Please tell me, in whose names these bills can be; i.e. me, my wife, Parents..??
I had recently given bills, which were in names of my father, my mother and me; but accounts manager has rejected that claim saying that I can submit bills of my name only.. (is it logical?)
While in mediclaim policy, they have included names of all my family members (father, mother & wife)..
Please give your valuable suggestions.
Best Regards
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