Medical Reimbursement Confusion: How Is the Taxable Amount Percentage Calculated?

Hi,

Please provide information on the medical reimbursement policy. How is the percentage for calculating the taxable amount determined?

Regards,
Ashok

Hi Ashok,

It depends on the company policy. The actual medical reimbursement for tax exemption is Rs. 1250.00 per month. So, if the medical allowance is more than Rs. 1250.00, the person will get an exemption on Rs. 1250.00. Reimbursement means that for claiming the allowance, one should produce the bills for the same. If a person is not providing the bills for medical expenses and is still taking the allowance, then the entire amount would be taxable.

Regards,

Amit Seth.

Dear Ashok,

Medical reimbursement of Rs. 1250 per month is completely exempt from taxes.

Regards,
Amit Seth.

If the employee provides fake or doctored bills for medical expenses, is it the responsibility of the company to ensure that the supporting documents provided are genuine?

Medical reimbursement is non-taxable to the extent of Rs 15,000 per annum, but one has to produce bills for the same. However, the amount above Rs 15,000 is taxable, and if no bills are produced for the claim, then it is 100% taxable.

Regards,
Sanjay Verma

We have a medical reimbursement policy in our organization. However, one particular employee met with an accident at the site and has been advised prolonged medical attention. Since he is covered under the group medical insurance, but he wants to claim the physiotherapy cost from the organization. Can it be reimbursed under the staff welfare head, and will it have any tax implications for the employee or employer? Kindly advise.