medical reimbursement

This query is : Resolved

Tapas Debnath (Querist)
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25 March 2009 is the medical reimbursement amount Rs.15000 can be shown in the tax computation of the employee against the amount which was shown in the salary breakup as Other Allow.?

Will it attract FBT for Employer?

How can employee get this exemption?

Please answer,

Thanks
Tapas Debnath

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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25 March 2009 an employee can show such medical reimbursement.

It will attract Fbt to employer.

to claim exemption , just need to have the bill of the medicalexpenses for which medical reimbursement have been made and the payment details of medical reimbursement employer i.e chequq etc

Tapas Debnath

Tapas Debnath (Querist)
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25 March 2009 Is any employer can show a fixed amount as Medical Reimbursement on monthly basis as a part of the employees salary?
What will be the correct term (Medical Expenses/Medical Allowances/Medical Reimbursement)which will give benefit to employee?

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Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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25 March 2009 • medical imbursement means employee has incurred any medical expenditure for him/her self and his family and the expenses are imbursed i.e. recovered from employer after employee has paid it out of his pocket.
• medical expenses means expense incurred for medical treatment or incidental there to.

and
• Medical allowances is a fix sum provided by employer to his employee monthly irrespective of his expenditure, even is there is no medical exp. then also employer provides hard core cash as medical allowance. it is always FULLY TAXABLE

Now back to your question

"Is any employer can show a fixed amount as Medical Reimbursement on monthly basis as a part of the employees’ salary?"

the logic is clear if the employee inures fixed amount as Medical exp. in each months and has relevant bill or evidence to prove that , then he can take fixed amount of medical expenditure each month.

however taking a fixed medical imbursement each month seems strange.
never the less the maximum limit of Rs.15000 shall be per annum