12 December 2012
if any employee incurred medical expenses of Rs. 1,25,000 for the dependent family member and claim medical reimbursement for the same, how much exemption can be allowed? u/s 80DDB maximum limit is Rs. 60000 for senior citizen,is there any other clause to allow full exemption on total reimbursement?
12 December 2012
Also lookinto the proviso (i),(ii) and (vi) to clause (viii) of Sec. 17(2) which specifially exempts certain fringe benefits from the purview of income tax obligation of an employee. Relevan provisions are reproduced below.
(i) the value of any medical treatment provided to an employee or any member of his family in any hospital maintained by the employer;
(ii) any sum paid by the employer in respect of any expenditure actually incurred by the employee on his medical treatment or treatment of any member of his family-
"(a) in any hospital maintained by the Government or any local authority or any other hospital approved by the Government for the purposes of medical treatment of its employees;
(b) in respect of the prescribed diseases or ailments, in any hospital approved by the Chief Commissioner having regard to the prescribed guidelines;
Provided that, in a case falling in sub-clause (b), the employee shall attach with his return of income a certificate from the hospital specifying the disease or ailment for which medical treatment was required and the receipt for the amount paid to the hospital;
and
(vi) any expenditure incurred by the employer on -
(1) medical treatment of the employee, or any member of the family of such employee, outside India;
(2) travel and stay abroad of the employee or any member of the family of such employee for medical treatment;
(3) travel and stay abroad of one attendant who accompanies the patient in connection with such treatment,
subject to the condition that - (A) the expenditure on medical treatment and stay abroad shall be excluded from perquisite only to the extent permitted by the Reserve Bank of India; and
(B) the expenditure on travel shall be excluded from perquisite only in the case of an employee whose gross total income, as computed before including therein the said expenditure, does not exceed two lakh rupees;"
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