Navigating Tax Deductions for Medical Bills: Can I Avoid Source Deductions?

Eligibility for Tax Deduction on Medical Bills

I am a public sector employee suffering from renal hypertension due to acute chronic critical kidney disease (classified as a critical illness) and have been undergoing C.A.P. Dialysis since 2010.

My monthly medical expenses amount to approximately Rs. 40,000, which are currently being reimbursed by my employer. My annual income is around Rs. 5 lac.

My employer deducts tax at the source on bills exceeding Rs. 15,000 in a year. Am I eligible for a tax deduction on medical bills? If so, could you please suggest the relevant sections of the income tax law that apply?

Also, which form should I submit to my employer to request not to have tax deducted at the source? If applicable, please provide guidance on this matter.

Thank you.

Tax Implications of Medical Reimbursements

Medical reimbursements do not attract tax provisions. I don't think you are liable to pay tax on reimbursements.

Regards,
Pon

Generally, medical reimbursement attracts a tax deduction for amounts above Rs. 15,000 per annum. Regarding expenses on the treatment of certain chronic diseases such as Motor Neuron Disease, an amount ranging from Rs. 40,000 to Rs. 60,000 will be exempted. Please check if your disease falls under this category.

Regards,
Abbas. P. S