What is tax exemption on Medical reimbursement given by employer? If the amount is reimbursed for treatment of an ailment of the heart, can the whole amount be tax-free?
Arnav Jain (Proprietor) (30 Points)
13 March 2019What is tax exemption on Medical reimbursement given by employer? If the amount is reimbursed for treatment of an ailment of the heart, can the whole amount be tax-free?
Susmita Dutta, CA , CPA
(CA )
(2141 Points)
Replied 13 March 2019
MEDICAL REIMBURSEMENT PROVIDED BY AN EMPLOYER TO AN EMPLOYEE FOR MEDICAL TREATMENT OF SELF OR ANY OF ITS FAMILY MEMBERS IN RESPECT OF THE PRESCRIBED DISEASES AS PER RULE 3A ARE TREATED AS TAX FREE PERQUISITE U/S 17(2) AND NO INCOME TAX ON MEDICAL REIMBURSEMENT IS LEVIED.