Claim Tax Benefit On 'Medical Allowance' On Which TDS Is Already Deducted By Employer

CaPulkit
You can claim it. Name does not matter since the intention of allowance is to reimberse. However the claim should be only of amount you have bills for.
vps_advocate@legalserviceindia.com
You can't claim deduction of medical allowance, however if it was medical reimbursement , it may be claimed.
Avika
You can not claim the amount now.
You would have got a tax benefit if you had submitted the bills to the employer in time and they would have taken the amount paid to you as reimbursement and not allowance.
As per the current provisions of law, you can not claim refund of tax deducted as the amount is actually medical allowance because you did not submit the bills on time.
This should be a lesson for you that you should submit the bills in time to the employer.
I hope this clarifies your doubts on the matter.
jusmas
Thanks guys.. My situation is that I worked in a company during Apr-Sep and in Sep the company shut down its operations. I have been working for one of their clients, and even after Sep, I continued. The salary used to come from the client and the closed company was paying to me. There was no accountant / HR in the company after Sep. to take care of these things and that is the reason I could not submit the medical bills. At the end, we didn't receive the form16 even after 8 months after the company shut down..
Thanks,
JT
Abdur Rashid
Dear All,
Medical Allowance is fully taxable as per the Income Tax Act. If fixed allowance amount of allowance is paid as part of your salary monthly irrespective of your spending on medical exp then ALLOWANCE IS FULLY TAXABLE unless it is exempted under section 10 of the IT ACT,1961.
Medical reimbursement is paid when employee incurred some expenses out of his pocket and same is claimed from the employer.In this case an amount of Rs.15000 is exempted.
Ex.If you incurred Rs.20000 ans same is reimbursement by the Employer then Rs.5000 (20000 -15000) is taxable while computing Taxable Income under Income Tax Act,1961
I hope this will help you .If you have any query pls mail at mdabdulrashid AT icai.org.
Awaiting for your comments.
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