Hi Guys And Gals
Read the following case law and give your suggestions.
Mr. x is an advocate, Mrs X is working in state bank of india.
Mr x undergoes an heart surgery on Dec 12, 2005 which costs Rs.200000/-
Mrs x got a reimbursement from his employer which amounts to Rs.150000/-(being 75% of the amt spent).
For that 75% she get a Tax free perks of Rs.15000/-(Expenditure on medical treatment in India ).
NOTE: The balance 25% (Rs.50000/-) is fully spent for medicenes.
Queries:
1) For the 75% whether Mrs x is eligible for any other deduction?
2) For the balance 25% mrs x will get deduction under section 80DDB? (or)
Mr. X can show the 25% in his returns and get deduction u/s 80DDB?
3) It is advisible for mr x to show the 75% in his returns?
Cheers
ya itz me :K) ;D :K)
Hi ,
In the specified disease Heart Attack is not there so the quetion of allowing the deuction doesnot arise at all.
Secondly as in your case the Wife gets reimbursement for the health problem of his Husband it is foolish to do so because since Husband is not working in that SBI how can there be any employer employee relationship & foremost important thing Advocate Income is not taxable under head Salary.If wife is not ill then ow can he get the reimbursemnet from his employer.
One thing can be done is she can take Interest Free Loan from his employer & later on repays those amount.
The Wife will be fully taxable for the 75% reimbursement which she took on behalf of his husband health problem.
There will be No Deduction Under Chapter VI A for this case.
Hoping that it was proved useful to you.If So the reply me.If you have any other query then you can send me private message.
Bye......
CAclubindia
