re: medical reimbursement

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 May 2010 hello:
I am a salaried employee of a sole proprietorship firm for the past 10 years.
I have been claiming the following deductions--
1. conveyance (800/mth=800x12=9600 pa)
2. child allowance (100/mth=100x12=1200 pa)

This amount (9600+1200=10800) i have been deducting from my salary to calculate my taxable income.

My query is---can i claim medical reimbursement (not allowance which i know is taxable, so i can produce medical bills to show reimbursement) @1250/mth=15000 per year? so that i claim 10800+15000=25800 deduction from my salary to arrive at taxable income?

could you please help me with this?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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08 May 2010 Yes. Medical reimbursment against bills can be claim exemption Rs.15000 per annum(but it should be in your salary structure) and Instead of showing conveyance allowance, need to show transport allowance because the conveyance allowance covered under sec.10(14)and exemption based on the bills foe offical usage

Rahul Gupta

Rahul Gupta (Expert)
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08 May 2010 Yes medical reimbursement can be claim as deduction subject to submitting of the medical bills upto a maximum of Rs 15,000 p.a.

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Rahul Gupta

Rahul Gupta (Expert)
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08 May 2010 Yes medical reimbursement can be claim as deduction subject to submitting of the medical bills upto a maximum of Rs 15,000 p.a.

Querist : Anonymous

Querist : Anonymous (Querist)

08 May 2010 Hello:

thank you Mr. Ramesh Krishnan and Mr. Rahul Gupta for your replies.

I just wanted to ask Mr. Krishnan--im already claiming Rs 800/mth as conveyance and it appears in form 16 as convyance allowance. Now, in order to make it transport allowance, what is to be done? how can it be shown as transport allowance, as per your reply?

thanks

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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08 May 2010 No need to change the same.It may be chance at the time of Assesment the conveyance allowane claim Rs.800 will be disallowed that time you can justity the A.O. for the same(this is allowance covered as home to office) for your reference better you refer the 2 circulars link

http://law.incometaxindia.gov.in/dit/File_opener.aspx?page=CIR&schT=&csId=7d4a86a3-5597-40cb-8da0-6185f41724eb&crn=764&yr=1998&sch=&title=Taxmann%20-%20Direct%20Tax%20Laws

http://law.incometaxindia.gov.in/dit/File_opener.aspx?page=CIR&schT=&csId=4f6775d9-2a5d-4a7c-a2b7-3552dfe91840&crn=196&yr=1976&sch=&title=Taxmann%20-%20Direct%20Tax%20Laws