Taxable reimbursement or non taxable reimbursement

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sumant kulkarni (Querist)
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04 November 2013 i am a central gov employee. i have received medical reimbursement of 1 lakh 40000 reimbursement. i want to know whether it is taxable or non taxable.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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04 November 2013 Medical reimbursement of over Rs 15,000 is taxable in the hands of an employee. So the excess amount reimbursed to you shall be included in your salary income for calculating tax

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sumant kulkarni

sumant kulkarni (Querist)
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04 November 2013 the reimbursement has been done against chronic kidney failure patient and parkinson's diesease. please check confirm if it is really taxable or not.
thanks for your response mr. bansal.

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CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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05 November 2013 Eligibility for 80DDB

This tax rebate is applicable for individuals and HUFs resident in India. Medical treatment for the following diseases should be undergone and you should have paid the expenses on yourself, spouse, children, parent, brother or sister:

i) Neurological Diseases with disability of at least 40%

- Dementia

- Dystonia Musculorum Deformans

- Motor Neuron Disease

- Ataxia

- Chorea

- Hemiballismus

- Aphasia

- Parkinsons Disease

ii) Malignant Cancer

iii) AIDS

iv) Chronic Kidney failure

v) Hematological disorders

- Hemophilia

- Thalassaemia

You would have to produce certificate from specialist government doctors in Form 10-I. They have to be certified by a Neurologist for diseases in (i), Oncologist for (ii), Nephrologists for (iv) and a specialist with degree in Hematology for diseases in (v). You can get a certificate from a specialist even if the treatment is being undergone in a private hospital.

80DDB tax deduction on medical treatment is not available for NRI taxpayers

Maximum deduction limit under 80DDB

The actual expense or Rs. 40,000, whichever is higher can be claimed for income tax deduction under section 80DDB. If the person undergoing treatment is a senior citizen and resident of India the exemption limit is Rs. 60,000.

How to get 80DDB tax benefit

You can submit the required certificate to your HR in the relevant year to get this deduction on salary TDS or if you miss it you can still put this amount in cell for 80DDB under Chapter VI-A deductions in ITR form in the section Income & Deductions.

Though certificate is not required to be attached with ITR form you should keep it you for record sake. Your taxable income reduces by the amount you claim as 80ddb deduction.

i.e Rs. 40000 is allowed as deduction . while Rs. 100000 is taxable.

sumant kulkarni

sumant kulkarni (Querist)
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13 November 2013 If I am not making mistake under sec. 17(2)(iii)of income tax act,1961 -

(perquisite means A payment or profit received in addition to a regular wage or salary)

the following shall not be treated as perquisite(benefit and not included in salary so the reimbursement is not taxable);

medical treatment of the employee or his family:

any sum paid by an employer towards expenditure actually incurred by the employee in any hospital approved by central government for the purposes of medical treatment of its employes

please check and inform if I am correct.