16 June 2018
Hello all. Medical reimbursement received by a govt employee is taxable or not? Reimbursement Amount is Rs 300000. Hospital is approved by state govt. Is the same is covered under section 17 (2)?. Is the word maintained by govt. and approved by govt have the same meaning? kindly reply plz
I read section 17 (2) which are as follows
Expense incurred or reimbursed by the employer for the medical treatment of the employee or his family (spouse and children, dependent - parents, brothers and sisters) in any of the following hospital is not chargeable to tax in the hands of the employee:
a) Hospital maintained by the employer.
b) Hospital maintained by the Government or Local Authority or any other hospital approved by Central Government
c) Hospital approved by the Chief Commissioner having regard to the prescribed guidelines for treatment of the prescribed diseases.
2) Medical insurance premium paid or reimbursed by the employer is not chargeable to tax.
CAclubindia
