Reimbursement of Medical Expenses

This query is : Resolved

Kirti Sanghavi (Querist)
Follow

02 April 2009 Dear All
As per I.Tax Act medical expense reimbursement for the year Rs 15000/- is expempt from tax.
If company pay 12500 in F.Y.2008-09 and balance Rs2500 booked as provision and issue cheque/cash in the financial year 2009-10.
My question is
1) is whole amount Rs15000 is tax free?
2) is requirement is to be paid in same financial year
3) can we paid two financial year reimburesment in one financial year.
thanking you

CA.Tarun Maheshwari

CA.Tarun Maheshwari (Expert)
Follow

02 April 2009 1. Yes, whole amount is tax free if made part of salary of employee.

2. No requirement of payment. It acn be made due in the name of employee and paid lateron.

3. You can pay two financial year reimbursement in one financial year. But expenses(Salary) are to be booked for each year.