Reimbursement of mediclaim premium and deduction u/s 80d

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

01 April 2013 I have paid the Mediclaim premium for me and my Family (spouse and son). My employer has reimbursed me the said premium. In view of clause (iv) of proviso to section 17(2) it is not taxable perqusite. Thus, no TDS to be deducted thereon.

My query is whether I can claim the deduction u/s. 80D in respect of Mediclaim premium initially paid by me but later on reimbursed by my employer.

I understand that section 80 D speaks about individual and HUF and only prior requirement is that the premium shall be paid out of income chargeable to tax and I feel that I have complied with the requirement of section 80 D by paying the premium out of my salary income. The event of reimbursement is occurred subsequently.

Whether my understanding is correct , can i take dual benefit?

RAHUL

RAHUL (Expert)
Follow

01 April 2013 No, You will not be eligible for deduction u/s 80 D since at the end such premium is paid out of exempt income.

Querist : Anonymous

Querist : Anonymous (Querist)

01 April 2013 But sir for the purpose of section 80D i have proved the nexus between taxable income(salary) and payment of premium at the event of payment of premium. Later on by the year end i may get it reimbursed from employer. Section 80D doesnt impose any such restriction that any amount recovered from employer should be reduced from deduction as specifically given in section 80DD and 80DDB.

Experts views are solicited.

Upgrade to CAclubindia Pro. Subscribe Now!