Medical Reimbursement amount regarding heart desease (Income
Querist :
Anonymous
(Querist) 05 March 2010
This query is : Resolved
the assessee had suffered from Hypertension & Ischaemic Heart Disease and therefore (Angioplasty) PTCA with Stent to LM done. and the assessee claims for amount of Rs. 134820/- towards expenses incurred tor this medical treatement. and he reimbursed such amount from his employer.
Now whether the total amount of Rs. 134820/- is exempt from tax because such amount is incurred for heart deases.
if it is exepmt, under which section?
please give details urgently.
I want to know that whether Medical Rembarsement u/s. 17(2), and as per Income Tax rule 3A-2(d) is exempt ? please advise me urgently
A V Vishal
(Expert) 05 March 2010
Before answer to your query ,Details of Valuation of Medical Facilities are given hereunder for reference.Following facilities will not be included in Income of employee.
Medical facility provided in a hospital,clinic ,dispensary or nursing home maintained by the employer.
Reimbursement of medical expenditure by the employer, incurred by employee on his or treatment of his family member in any govt hospital (including dispensary /clinic or nursing home) or
hospital (including dispensary /clinic or nursing home) maintained by Local authority or approved for govt employees .
Value of medical treatment for prescribed diseases or ailments in any hospital approved by the Chief Commissioner of Income tax.For claiming this benefit the employee needs to attach with his income-tax return a certificate from the hospital specifying the disease or ailment and receipt for the amount paid.(from ay 2008-09 nothing is to be attached with ITR form)
Besides, any sum paid by the employer towards medical reimbursement other than as discussed above is exempt up to Rs.15,000/-.
Expenditure incurred by the employer on medical treatment of the employee or his family member for medical treatment outside India. This includes travel and stay abroad of the employee or the family member plus one attendant who accompanies the patient in connection with the medical treatment. This exemption is subject to the condition that:
the expenditure excluded from the perquisite value shall be to the extent permitted by the Reserve Bank of India;and
the travel expenditure is excluded only if the gross total income of the employee before including such travel expenditure does not exceed Rs. 2 lakhs. so other than above the medical facility is taxable in hands of employee.Treatment amount ,reimbursement , unapproved /non govt Hospital other than as explained in point no 2 above up to 15000 is not be included in salary and amount in excess of 15000 is to be included in employee's salary.
Kumar Thadhani
(Expert) 06 March 2010
Yes medical allowance above Rs15000/= are taxable in the hands of individual.
