Medical Allowance Claims: Are Original Bills Necessary or Will Photocopies Do?

As per the current IT rules, ₹15,000 is allocated for medical allowance, and it can be tax-free if we provide the bills. My question is, do I need to provide original medical bills for the medical allowance claim, or is a photocopy sufficient?

If you invest in a medical health cover policy with an insurance company and pay the premium by cheque, a maximum of ₹15,000 can be claimed as a deduction from taxable income. Section 80D is relevant in this connection. Premiums paid out of the current year's taxable income for self, spouse, or dependent children will be eligible for a deduction. A copy of the premium receipt duly stamped and signed by the insurance company will be sufficient proof of payment.

To avail of medical reimbursement, you need to provide original bills.

Thank you, Nathrao, for your reply. I think you are referring to Mediclaim Premium- 80D. I am not clear about producing bills for the Medical Reimbursement component. Could you please clarify whether original bills are required, or if photocopies are acceptable for reimbursement purposes?

Clarification on Reimbursement and Allowance

Reimbursement and allowance have different connotations in the Income Tax Act. Medical reimbursement up to ₹15,000 is tax-free, subject to the production of original bills. Medical allowance does not require the production of bills.

Does one need to surrender the X-rays at the time of submission of a claim for reimbursement from the insurance company?

Logically speaking, X-ray should not be surrendered, and the original bill for payment of X-ray charges should suffice. X-ray will be required by you as your medical record.

Dear All,

What if HR is not showing Medical Reimbursement in the salary break-up? Is it applicable to employees, or can they raise the bills for I-Tax, please?

Thank you.

Medical Bills for Reimbursement

Original medical bills (the expense on account of yourself and dependents) should be produced. Photocopies can invite audit objections as there is no guarantee that two persons used the same bill for the claim (e.g., Husband and Wife in two companies). Also, you are not supposed to produce the same bill for an insurance claim and then for medical reimbursement.

New Services for Bill Verification

Now, Zeta kind of services are available where employees upload the bills in the app, and they take care of verification. Some companies follow this route to get rid of medical bill checking, etc.

Impact of the New Budget

However, from next year onwards, you can forget these bills. Salaried taxpayers and pensioners need not furnish any bills or documents to claim the standard deduction of ₹40,000 announced in the budget on February 1.