Medical Allowance Confusion: Can I Submit Doctor's Consultation or Surgery Bills for Tax-Free Claims?

15000 INR is allocated for medical allowance, and it can be tax-free if we provide the bills.

My question is - Can I provide the doctor's consultation charge bills? Or can I provide the doctor's surgery charge bills?

Yes, you are very correct. An amount of Rs. 15,000/- in a year is exempted from taxes. To avail of this benefit, one must provide the medical bills to the commercial department.

Regards,

Amit Seth.

Dear All,

Greetings!

Of course, the information provided is correct. I have another query.

Going further, in case an employee has a component of Rs. 15,000 as Medical Reimbursement in one's salary. The person does not claim it during the financial year. Nor does the person have the supporting bills to claim that amount. :(

Now, is it possible to claim that amount as "taxable" without submitting any bills? :?: In my company, this is not allowed, but I would like to know the industry norm as per the Income Tax Rules.

Looking forward to your comments.

Thanks in advance.

Warm Regards,
Ag

Dear,

If you can justify consultancy charges to the extent of Rs. 15,000/-, it surely can be done, but supportings regarding the same like medical bills, certain test reports, etc., need to be produced.

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Regards, Zakir

In case the employee does not have enough supporting bills, he can claim the amount, and the same gets taxable. Our organization practices this, and many others also.

If the amount of Rs 15,000 is part of your agreed-upon CTC, then the company should pay it. Here (in case of an employee not having bills), the company will not lose or gain anything, but the employee will not get relief in IT calculation. The company should make the payment of the amount agreed upon in CTC and consider it as taxable in the individual's tax calculation. If not supported by bills, it will be an allowance and not reimbursement.

Hope the same is of some help to you.

- Hiten