BOOBALAKRISHNAN (Manager) (61 Points)
20 August 2011My family is covered under Group Health Insurance including myself by my the Employer. Current year I have claimed against my Medical Bills thro' my Employer. But my employer includes the claimed amount in my taxable income (after deducting Rs.15000.00 for medical exemption) and deducted the TDS. Is it OK?
Devendra
(Chartered Accountant)
(4775 Points)
Replied 20 August 2011
Do you mean to say that your employer reimburses all the medical expenses incurred by you during the year and secondly the total expenditure is more than Rs. 15000 during the year. If that is the case then, yes, your employer is following the correct procedure. Medical Reimbursement is exempt upto Rs. 15000. Hence the amount reimbursed beyond Rs. 15000 to you by your employer should be taxable in your hands. (ie. your employer is deducting TDS on the reimbursement beyond Rs. 15000)
Regards,
Devendra K
CA.B.Sivakumar
(-)
(162 Points)
Replied 21 August 2011
The reply given by Mr.Devendra is correct and it is accepted.
Sanat kumar
(Chartered Accountant)
(265 Points)
Replied 22 August 2011
| Originally posted by : Devendra | ||
 |
Do you mean to say that your employer reimburses all the medical expenses incurred by you during the year and secondly the total expenditure is more than Rs. 15000 during the year. If that is the case then, yes, your employer is following the correct procedure. Medical Reimbursement is exempt upto Rs. 15000. Hence the amount reimbursed beyond Rs. 15000 to you by your employer should be taxable in your hands. (ie. your employer is deducting TDS on the reimbursement beyond Rs. 15000) Regards, Devendra K |
 |
Agreed with Mr. Devendra
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