Medical bills
This query is : Resolved
10 July 2012
Hi!
Whether Medical Bills for FY 2011-12 which were omitted to submit can now be claimed as exemption in FY 2012-13?
Please suggest relevant Income Tax provision in this regard.
Whether Medical Bills for FY 2011-12 which were omitted to submit can now be claimed as exemption in FY 2012-13?
Please suggest relevant Income Tax provision in this regard.
11 July 2012
Mr Hemant!
If the Balance Sheet for the year ending 31.3.2012 is still to finalized then incorporate these medical bills in Profit and Loss account and payable in Balance Sheet. This payable be paid currently.
contact@vkbajaj.co.in
If the Balance Sheet for the year ending 31.3.2012 is still to finalized then incorporate these medical bills in Profit and Loss account and payable in Balance Sheet. This payable be paid currently.
contact@vkbajaj.co.in
11 July 2012
Hi!
I intend guidence om "Medical Reimbursement exemption' in the context of exemption for Salaried Person.
Please revert!
I intend guidence om "Medical Reimbursement exemption' in the context of exemption for Salaried Person.
Please revert!
11 July 2012
i agreed but fy 2012-2013 bills only considered for claim for exemption
11 July 2012
Dear Bharath Kumar,
Can you please suggest Income Tax provision in this regard?
Can you please suggest Income Tax provision in this regard?
03 August 2024
Certainly! Let's break down the provisions related to medical reimbursement and how to handle claims that were omitted for a previous financial year.
### Medical Reimbursement Exemption for Salaried Persons
**1. Income Tax Provisions for Medical Reimbursement:**
For salaried individuals in India, medical reimbursement was previously covered under Section 10(14) of the Income Tax Act, 1961. The key provisions were:
- **Section 10(14):** This section provided an exemption for medical reimbursement to the extent of ₹15,000 per annum. This exemption was available for actual expenses incurred by the employee for medical treatment, provided such reimbursement was given by the employer and was not part of the salary.
However, it’s important to note that the rules regarding medical reimbursement changed after the Finance Act, 2018.
**2. Changes After Finance Act, 2018:**
The Finance Act, 2018, introduced a significant change regarding medical reimbursement:
- **Section 10(14) Revision:** With effect from the Financial Year (FY) 2018-19, the exemption of medical reimbursement under Section 10(14) was replaced. The ₹15,000 exemption was withdrawn, and instead, a standard deduction of ₹40,000 (later increased to ₹50,000) was provided under Section 16(i) for salaried individuals, which subsumes medical reimbursements and other allowances.
**3. Medical Reimbursement for FY 2011-12:**
If you have medical bills for FY 2011-12 that were omitted but you now wish to claim them, here’s what you need to know:
- **Claiming for Previous Years:** Generally, claims for medical reimbursement or other deductions must be made within the relevant financial year for which they pertain. For FY 2011-12, you would have needed to submit the medical bills and claim exemptions in your tax return for that year.
- **Rectification:** If you missed claiming medical reimbursement for FY 2011-12, it’s usually not possible to claim it in FY 2012-13. However, if there was an error or omission in the return filed for FY 2011-12, you could file a revised return for that year, subject to the time limits prescribed by the Income Tax Act.
**4. Revising Returns:**
- **Revised Return for FY 2011-12:** If you have missed claiming medical reimbursement for FY 2011-12, you can file a revised return for that year within the specified period (usually within one year from the end of the relevant assessment year, or within four years if the assessment was not completed).
### Summary of Relevant Provisions:
- **Section 10(14):** Provides exemptions for medical reimbursement, but the exemption was revised after FY 2017-18.
- **Standard Deduction (Section 16(i)):** Replaces medical reimbursement exemptions from FY 2018-19 onwards.
- **Revised Return:** If you missed claiming medical reimbursement for FY 2011-12, you may file a revised return for that year, within the allowed time frame.
For accurate advice and to ensure compliance with current regulations, especially with respect to revised returns or claims for specific financial years, it is advisable to consult a tax professional or chartered accountant. They can provide personalized guidance based on your specific situation and the latest tax laws.
### Medical Reimbursement Exemption for Salaried Persons
**1. Income Tax Provisions for Medical Reimbursement:**
For salaried individuals in India, medical reimbursement was previously covered under Section 10(14) of the Income Tax Act, 1961. The key provisions were:
- **Section 10(14):** This section provided an exemption for medical reimbursement to the extent of ₹15,000 per annum. This exemption was available for actual expenses incurred by the employee for medical treatment, provided such reimbursement was given by the employer and was not part of the salary.
However, it’s important to note that the rules regarding medical reimbursement changed after the Finance Act, 2018.
**2. Changes After Finance Act, 2018:**
The Finance Act, 2018, introduced a significant change regarding medical reimbursement:
- **Section 10(14) Revision:** With effect from the Financial Year (FY) 2018-19, the exemption of medical reimbursement under Section 10(14) was replaced. The ₹15,000 exemption was withdrawn, and instead, a standard deduction of ₹40,000 (later increased to ₹50,000) was provided under Section 16(i) for salaried individuals, which subsumes medical reimbursements and other allowances.
**3. Medical Reimbursement for FY 2011-12:**
If you have medical bills for FY 2011-12 that were omitted but you now wish to claim them, here’s what you need to know:
- **Claiming for Previous Years:** Generally, claims for medical reimbursement or other deductions must be made within the relevant financial year for which they pertain. For FY 2011-12, you would have needed to submit the medical bills and claim exemptions in your tax return for that year.
- **Rectification:** If you missed claiming medical reimbursement for FY 2011-12, it’s usually not possible to claim it in FY 2012-13. However, if there was an error or omission in the return filed for FY 2011-12, you could file a revised return for that year, subject to the time limits prescribed by the Income Tax Act.
**4. Revising Returns:**
- **Revised Return for FY 2011-12:** If you have missed claiming medical reimbursement for FY 2011-12, you can file a revised return for that year within the specified period (usually within one year from the end of the relevant assessment year, or within four years if the assessment was not completed).
### Summary of Relevant Provisions:
- **Section 10(14):** Provides exemptions for medical reimbursement, but the exemption was revised after FY 2017-18.
- **Standard Deduction (Section 16(i)):** Replaces medical reimbursement exemptions from FY 2018-19 onwards.
- **Revised Return:** If you missed claiming medical reimbursement for FY 2011-12, you may file a revised return for that year, within the allowed time frame.
For accurate advice and to ensure compliance with current regulations, especially with respect to revised returns or claims for specific financial years, it is advisable to consult a tax professional or chartered accountant. They can provide personalized guidance based on your specific situation and the latest tax laws.
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