Medical reimbursment dedution in this case ?

This query is : Open

uday singh Negi (Querist)
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12 February 2013 Dear Sir,

suppose a person getting monthly salary of rs. 50,000/-
and his break up is given below

basic 20,000/-
HRA 15,000/-
conveyance 10,000/-
Medical reimb. 5,000/-

medical allowance is fully taxable but
as far as medical reimb. is concerned it is exempted up to 15000/-

so my query is this, if he provides medical bill up to rs. 15,000/- as reimbursement, can he get deduction of rs. 15,000/-

because reimbursement is fixed in a nature per month
i think it is taxable ?
but some people says it is non taxable and he can get deduction of rs. 15000/-

but i think reimbursement is apart from salary and it can not be included in salary ,and it is non taxable if employee provide bills for getting these deduction

and these reimbursement is sepretaly shown as medical exp in the books of company not as part of salary or salary ?

Expert Plese reply

V K Bajaj

V K Bajaj (Expert)
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13 February 2013 In this case exempted amount is Rs. 1250/- per month.

First these Rs. 15000 shall be added in his total remuneration and then same amount shall be deducted u/s 80D.

Medical Bills are required.

Employer may maintain a seperate account for such reimbursements but while compiling the balance sheet it is to be clubbed with Salaries expenses.

uday singh Negi

uday singh Negi (Querist)
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14 February 2013 Dear bajaj sir,

but as far as i think in section 80D only mediclaim is covered and medical reimbursement is cover under Section 17[2] as perquisite,

and other point is medical reimbursement can not be fixed in nature and it can't be part of salary, and not shown in salary slip, but in this case it fixed in nature

so how he can get deduction against it

please correct if i am wrong

thanks

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