Reimbursement of Medical Expenses

This query is : Resolved

Prashant (Querist)
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18 May 2009 I am getting monthly reimbursement of medical to the tune of Rs 1250/- so not exceeding Rs 15000/- p.a. Now my query is can I claim this as an exemption while filing of my return even if I do not produce the medical bills to my employer because since reimbursement of medical is taxable under FBT upto Rs 15000/- and over and above Rs 15000/- is taxable in the hands of employee. So when upto 15000/- it is liable for FBT do I have to produce the medical bills to company to claim exemption or simple declaration is sufficient. Suppose if I dont produce the bills still will it be taxed in my hands as well as taxed under FBT.

Thanks in advance

Kedar Pande

Kedar Pande (Expert)
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18 May 2009 In my opinion, if you dont produce the bills it will taxed as income in your hands, as after the FBT provisions coming into existance, Income Tax Act is not amended. Income Tax and FBT are two different taxes.