Can You Carry Forward Medical Reimbursement and Use Last Year's Bills Legally?

Dear Seniors,

Our company has incorporated the component of medical reimbursement in the compensation package. The maximum limit is ₹15,000 on an annual basis. I wanted to know whether it is possible to carry forward this amount to the next financial year. If yes, can an individual produce bills from the last financial year to claim the benefit? Is it legal as per the income tax laws?

Please help.

Manmeet

Dear Manmeet,

Whether you can carry the amount forward or not depends on the company, but as per income tax regulations, you are entitled to a tax benefit of Rs. 15,000 on medical expenses every year. This amount is fixed with no provision for carry forward.

Regards,
SC

Hi Manmeet,

The amount cannot and should not be carried forward to the next financial year. If the employee does not avail the reimbursement, then the entire amount should be handed over to him after deducting the tax. By any chance, this cannot be carried forward; it has to be given as an unclaimed amount within that financial year.

~Roopa

Dear Manmeet,

No, you can't carry forward medical reimbursement. If there is any unavailed medical balance, then all unavailed balance amounts of medical expenses will be given to the employee after deducting taxes.

Regards,
Vivek