Medical Reimbursement: Please Reply

We provide medical reimbursement to our employees on a quarterly basis. but they're not always able to provide the requisite medical bill. what should be done in this scenario
1. can they also produce the bill of their immediate family members like father, mother, wife and kids, and /or any other relative?
2. should we ask them to produce bill on an annual basis (of rs 12,000, or 15,000) if they can't produce the bill quarterly?
or can we also give them the payment without the production of medical bills?
for your information, this medical amount is part of their salary. please suggest as soon as possible. thanks in advance.

Option 2 is acceptable. If they fail to produce the bills at the end of Dec upto Rs.15000/, the amount may be treated as taxable. The medical bills of dependents are permissible for tax exemption.

Hi,
1) The employees can cover the medical expenses of the dependents like Mother, father, dependent siblings. We follow this policy.
2) The bills can be produded annually before 31st March. But only trouble is collecting the bills of such a huge amount. Hence quaterly system is helpful.
In case you pay them the medical amount without bills, that much amount becomes taxable.
Regards
Trupti.