If we are making Medical Reimbursement as part of salary break-up and at the end of the year out of Rs. 15000 only Rs.10,000 bills are received. Then how to manage the tax at the end of the year ?
From India, Delhi
Acknowledge(0)
Amend(0)
From India, Delhi
Acknowledge(0)Amend(0)
Hi, Then u need to tax the Balance Rs. 5000 in our example. Rgds, Vikas
From India, Mumbai
Acknowledge(0)Amend(0)
11From India, Mumbai
Acknowledge(0)Amend(0)
The way to treat this is to add Rs 15,000 (since it is a part of the CTC) to the Gross Income. Thereafter, allow a deduction (under Section 80D) for the amount of bills submitted (up to a maximum of Rs 15,000).
In this manner, in the example cited by you, wherein bills for Rs 10,000 are submitted, the residual amount of Rs 5,000 will be included as taxable income and get taxed accordingly.
Regards,
Raju Bhatnagar
From India, Bangalore
Acknowledge(2)
Amend(0)
In this manner, in the example cited by you, wherein bills for Rs 10,000 are submitted, the residual amount of Rs 5,000 will be included as taxable income and get taxed accordingly.
Regards,
Raju Bhatnagar
From India, Bangalore
Acknowledge(2)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Know the Tax Burden on Your Salary Package.pdf
Salary as medical rep.JPG
Salary-Note.doc