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Medical facility reimbursed by the employer..... What treatment should I do? Whether I make fully taxable as nothing is mention about medical or Make fully exempt as reimbursed paid by employer?
Answers (2)
No tax is levied on medical reimbursement up to Rs. 15,000 if all bills are furnished by an employee to his or her employer as per clause (b) of Section 17 (2) of the IT Act, 1961.. As per clause (VI) of Section 17 (2) of the IT Act, 1961, medical expenditure incurred by an employee or any of his family members outside India is fully tax-exempt. Fixed medical allowance is chargeable to tax. The reimbursement of expenditure incurred by an employee or any of his family members, up to Rs. 15,000 is not treated as a prerequisite and consequently, not taxable. On the other hand, Fixed Medical Allowance (FMA) is not covered under the aforementioned exemption and will, therefore, be taxable.
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