Hello,
In my salary structure sheet. There is Rs. 1250 per month medical reimbursement part. I understand that to claim tax exemption, I would need to submit receipts and bills. My question is if I do not submit bills or submit bills for less than Rs. 1250, will I get the remaining amount or will I get nothing else except the bill part?
From India, Delhi
In my salary structure sheet. There is Rs. 1250 per month medical reimbursement part. I understand that to claim tax exemption, I would need to submit receipts and bills. My question is if I do not submit bills or submit bills for less than Rs. 1250, will I get the remaining amount or will I get nothing else except the bill part?
From India, Delhi
If you will give the bills, you will get the income tax exemption on that amount.
If you do not give bills, you will have to pay income tax on the medical allowance part of the Salary.
Further, you need to check your company policy that will they pay the total amount of medical allowance irrespective of the bills or do they only reimburse against the bills.
From India, New Delhi
117If you do not give bills, you will have to pay income tax on the medical allowance part of the Salary.
Further, you need to check your company policy that will they pay the total amount of medical allowance irrespective of the bills or do they only reimburse against the bills.
From India, New Delhi
The Medical reimbursement component if it is a part of your salary then you are entitled to get it in full whether the bills/receipt of Medical is submitted or not. At the end of the year for Tax calculation all Medical Bills submitted during the year to an extent maximum of Rs. 15000/- (Rs. 1250 x 12) will be exempted from the total salary.
From India, Ahmadabad
From India, Ahmadabad
You need to understand the difference between reimbursement and allowance. Reimbursement is supported by bills. Allowance is not.
Income tax act exempts Medical Reimbursement from Income tax subject to ceiling of Rs. 15,000/- per annum.
Medical allowance (not supported by bills) is therefore taxable.
Whether you will get paid or not in case you do not submit bills depends on your contractual terms with your employer.
Trust your query is addressed fully.
A S Bhat
From India, Pune
Income tax act exempts Medical Reimbursement from Income tax subject to ceiling of Rs. 15,000/- per annum.
Medical allowance (not supported by bills) is therefore taxable.
Whether you will get paid or not in case you do not submit bills depends on your contractual terms with your employer.
Trust your query is addressed fully.
A S Bhat
From India, Pune
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Medical Reimbursement Format.doc
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