taxable income

This query is : Resolved

Amar (Querist)
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28 January 2009 We are giving medical reimbursements of Rs.15000/- to our staff, is that income to be added their gross income or not when we are calculating their taxable income.
(Individual salary persons).
Thanks in advance.
Amar.

CA Hemant T Dewani

CA Hemant T Dewani (Expert)
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28 January 2009 Expenditure tax exempted up to Rs. 15,000/- in case of treatment taken at any Hospital/ Clinic etc. However it is fully tax free in the following cases:-

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Expenditure incurred by an employee/ his family members at any Hospital maintained by Govt./ Local authority/ approved by govt.
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Expenditure incurred by an employee/ his family members in respect of treatment of diseases specified in Rule 3A of Income Tax Rules’ 1962/ Hospital approved by Chief commissioner of Income tax.
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Any portion of Insurance premium either paid by the employer or reimbursed to the employee for the Health Insurance of his employee under a scheme approved by central Govt./ IRDA.