How Can I Make the Most of My Unclaimed Medical Reimbursement? Seeking Advice on Options

Dear Friends,

My employer is offering me 10,000/- per annum as medical reimbursement. I would like to know the following:
- If I submit medical bills totaling less than 10K, for example, 5K:
- How can I claim the remaining 5K?
- Will they carry forward the unused 5K to the next fiscal year?
- Will they provide me with the remaining 5K after deducting taxes?
- What other possibilities exist?

Please assist.

Thanks,
YUSUF

Hi,

It depends on your company's policy. Many companies pay the balance in the same year and deduct tax as per the provisions of IT. Check your company's policy.

Siva

Hi,

As a practice, your unclaimed reimbursements are added to the SPL ALLOWANCE at the end of the financial year. After deducting tax at the source, that amount is given in the form of in-hand salary.

If you have any more doubts, please drop me an email.

KATYANA

Hello Katyana,

Our company says the unclaimed amount will be carried forward to the next fiscal year. Is this in accordance with the law or is it the company's own practice?

-YC

The honourable court has ruled that medical bills are not necessary for an amount of Rs. 1250 per month, i.e., Rs. 15,000 a year. This amount will be non-taxable.

Hi,

Based on my knowledge, the amount under consideration is a reimbursement for medical expenses termed as domiciliary. In the case as described by you, it is a structuring of the salary and not a true benefit. Nonetheless, being a reimbursement, the medical bills have to be submitted.

Hi,

I think you first need to ascertain if the $10,000 allocated is a part of your salary or if it is a true benefit (over and above salary). If it is a part of the salary, then you are eligible to receive the amount for which you have not been able to produce bills post tax deduction. If it is over and above salary, then you are not entitled to receive any amount over and above what you have incurred. In such a case, the amount would lapse or get carried forward as per your company's policy.

Hi All,

I have to set a procedure for Medical reimbursement starting this month. Can anyone help me with this? I understand that ₹15,000 can be claimed as tax-free if necessary bills are provided. As an employer, how should I go about this?

Regards, Vidya

Dear Noel,

I understood your point that if it's a part of my salary, then I would get it after tax deduction. But would I get it in the same financial year?

Hi Vidya,

As per Government norms, up to a maximum of Rs. 15,000 per year can be claimed towards medical reimbursement on producing the medical bills (The bill could be in the name of the employee or immediate dependents). On a monthly basis, this would come to Rs. 1,250; the employee can either submit bills on a monthly, quarterly, half-yearly, or annual basis. This completely depends on the company policy.

If by the end of the year, he is not able to submit bills worth Rs. 15,000, then the balance amount is credited along with his salary after deducting tax.

Regards,
Lakshmi

Medical Reimbursement Issues

This discussion is very vital. As an employee, I am not able to claim medical reimbursement, which is a part of my CTC (mentioned in the appointment letter), due to a lack of medical bills. The employer denies such payment even if I am ready to forgo the TDS on it. The employer contends that it would be paid only on submission of bills. In the event bills are not submitted, the amount lies with the company and is paid at the time when you leave the employment.

Please help with case laws, circulars, or notifications for defending the stand that the employee can claim it after TDS.

Regards,
Anand S.