Medical Reimbursement - Salary

Hi,
If Medical reimbursement is a part of Salary structure of an employee, then can a company pay the medical reimbursement of INR 1,250/- every month to that employee with salary and can adjust the amount when bill provided by him. In case bill not provided, the same can be made taxable.

Dear Gyan,
Surely the co. can pay it on a monthly basis and ask for submission of bills for the financial year by February end so that the amount for which bills are not provided are made taxable and corresponding tax amount is deducted from the respective employees March salaries.
Regards
Amitava Majumder

Dear Amit, i think upto 1250 monthly (15000 per annum) medical amount is completely tax free, so no need of bills. Definately if amount exceeds this, that will be taxable.

I think Amit is right. Entire 15,000/- is not tax free, only the portion out of it claimed by employee by way of providing bills is tax free. Even if, any one claim expenses more than 15,000/- by way of bills, the excess amount if reimbursed by Employer is taxable in the hand of employee.
thanks Amit for your input

Re : Medical Reimburesement
The Medical Reimbursement is Tax Free upto Rs.15000/- p.a.
So no bills are required if the company is paying the amount not exceeding Rs.1250/- p.m.
Vikram

Medical of Rs. 15,000 /annum is non taxable only on submission of appropriate meadical bills else the amount becomes taxable.

dear all,
can any senior person give right answer for this?
as few have said its taxable without bill and few others responded as bills not required...

Hi All,
The medical expenses reimbursed by an employer is tax free in the hands of employee only when the employee submits bills for the same. It's actually on a annual basis and the max.amount is Rs.15,000/-. Some employer may decide to pay the sum every month as Rs.1250/- for 12 months and ask employee to submit bills once a year or quarter or so. The final idea is that, the amount reimbursed (Total Rs.15,000) in excess of bills submitted is taxed. All these provisions were 100% correct till last year.
In the last budget, it was given as the FBT is abolished and all benefits are taxable in the hands of employee.
Can anyone share more info on in this regard
Jay

Hi,
This particular (perquisities) part of salary governed by Income Tax Act. Here the amount is not taxable if reimbursed by Employer to Employee upto INR 15,000/PA.
The word "reimbursement" itself suggest "compensation paid when claim made" and here a claim always to be supported with some evidence of expenses means bills etc.
I can not say I have spent INR 15,000/- on medical treatment but certainly I need to prove it with certain documentary evidence.
As FBT already abolished, I believe, it will go as per provision as mentioned in IT Act under the head Salary - Perquisities

Hi,
If Medical reimbursement is a part of Salary structure of an employee, then can a company pay the medical reimbursement of INR 1,250/- every month to that employee with salary and can adjust the amount when bill provided by him. In case bill provided by the name of spouse, mother,children then the same can be apply. can madical reimbursement will be apply on him?