Valuation of of reimbursement of medical expenses/medical facilities by employer [sec. 17(2)]
KESHAV RAU
(Querist) 22 February 2012
This query is : Resolved
MY WIFE WORKING IN A PSU IS CANCER PATIENT AND UNDERGOING TREATMENT FOR IT. THE EXPENSES INCURRED ARE REIMBURSED BY HER EMPLOYER. TDS IS ALSO DEDUCTED ON THE AMOUNT OF REIMBURSEMENT EXCEEDING RS. 15,000/- IN THE F.Y. IN QUESTION.
IS IT TRUE THAT THE INCOME TAX ACT PROVIDES FOR TOTAL EXEMPTION IN RESPECT SUCH REIMBURSEMENT WHICH PERTAINS TO EXPENDITURE INCURRED ON TREATMENT OF CANCER EVEN IF THE AMOUNT EXCEEDS RS. 15,000/- ?
IF THIS IS CORRECT, WHAT ARE THE CERTIFICATES REQUIRED TO BE OBTAINED FROM THE PHYSICIAN/HOSPITAL CONCERNED FOR SUBMISSION TO THE EMPLOYER SO THAT THE EXEMPTION COULD BE PERMITTED ?
C. P. CHUGH
(Expert) 23 February 2012
Yes your wife is entitled to deduction of upto Rs. 40000.00 or actual expense whichever is less u/s 80DDB of the Act.
Although her employer may not allow this deduction as DDO/Employer, yet she can claim this while filling her return of income. Pls note this deduction is subject to certain conditions as prescribled under the Law. Pls consult your Tax advisour before filling of return.
Thanks
