Medical Reimbursement Tax Deductions: Has Your Claim Amount Been Reduced Too?

Is there any tax deduction in the Medical Reimbursement claim amount?

In my company, tax was deducted from my Medical Reimbursement claim amount.

Please can anyone help me out.

Till Rs. 15,000 per annum is exempted from tax for medical allowance. Amounts above Rs. 15,000 are considered as taxable income.

Thank you.

Swati, please replace the word "Medical Allowance" with "Medical reimbursement."

Dear Jayprakash,

If you have been paid the Medical reimbursement more than $15,000.00 in the financial year, then certainly it would be taxable. The medical allowance, which is paid along with the salary on a monthly basis, is considered as part of the salary and is taxable.