2) Any amount received by the insurance company in respect of health insurance will not be considered income of the insured person, as it is not a profit or income for the insured, but only a reimbursement. My friend received rs.8000000 for medical reimbursement this year from the state government, his wife released an early baby in 2016 at the government-recommended hospital. Is it taxable? Please guide me I am an employee of the state government I received Rs 188000 as a medical refund for my wife`s surgery this year this office is called income and d taxable according to its law pl send me a quick response. Since retirees and employees can now submit the application directly, it is no longer necessary to fill out a form. But some companies still ask their employees to submit medical bills for reimbursement. Each company has its own form of reimbursement. As a result, the format of the refund form may vary from company to company. No, you can only assert a claim as part of the medical reimbursement for the financial year in question and not for the previous financial year. Some companies offer medical allowances to their employees every month. As a rule, this compensation is a fixed amount that companies make available to their employees. These medical allowances or refunds that employees receive from their respective companies cannot claim tax deductions. In addition, the refund is subject to full taxation in accordance with the provisions of the heading “Income from other sources”. Sir, I work in a semi-governmental organization.
My employer spent Rs. 630000.00 on my mother`s medical bill. It depended on me. She was treated for cancer and she also died. My employer deducted rs. 80000.00 as room rent and other administrative costs of my salary. Now the accounting department has included Rs. 556000.00 in my income tax sheet and calculated the income tax. They charged Rs. 157000/- as additional income tax on medical bills paid by the employer. Similarly, all other employees have the same problem. pls tells us if this is in accordance with the Income Tax Act.
Generally, reimbursement of medical expenses is tax deductible if the employer uses a formal and compliant reimbursement plan. If the business uses a more flexible arrangement, refunds are taxable. While casual plans may seem simpler at first glance, they are still subject to regulatory compliance, and it`s important for employers to be cautious when using them. In addition to the above exemption, the following persons are also not taxable under Section 17(2) of the Income Tax Act when treated in India: Under the provisions of the U/S 80DDB Medical Expense Tax Deduction Provisions, a person who earns income may claim tax deductions on his or her medical expenses caused either by himself, their children, spouses or siblings and dependent parents. This deduction can be claimed by HUF members and Indian residents for the current fiscal year. Many companies offer their employees the possibility of medical reimbursement. This is in addition to the group life insurance offered by the employer. Let`s learn more about the reimbursement of medical expenses.
In the case of employees who receive medical expenses, the entire amount is taxable. In the case of self-funded medical expenses (i.e., from their own source), there is no income for the person who incurred expenses. Consequently, the question of the chargeability of the tax does not arise. Tax benefits will also be available for medical expenses related to the treatment of the elderly, unless health insurance is taken out. Each appraiser can receive tax benefits for medical expenses up to Rs 50,000 u/s 80D if he or a member of his family is an elderly citizen. Such an appraiser can also claim additional tax benefits of up to Rs 50,000 on his parents` medical expenses, provided that they are also not covered by health insurance. Thus, the maximum services available u/s 80D on medical expenses is Rs 1 lakh in a fiscal year. Former Finance Minister Arun Jaitley had announced the ₹40,000 cap for tax exemption for medical expenses related to transportation and medical treatment costs. Whether it`s an employee or a retiree, you don`t need to provide medical bills or documents related to medical expenses to claim the standard ₹40,000 claim. This provision was recognised from fiscal year 2018 to 2019.
Therefore, there are no rules for claiming the tax deduction, appraisers are allowed to make the claim directly. (3) For employees, if the employer pays the health insurance premium on behalf of the employee or reimburses the employee for the health insurance premium, this amount is not taxed in the hands of the employee. The total amount of expenses incurred by the employer is an eligible expense for that employer under the Income Tax Act. Without medical health insurance, a sum of up to five thousand rupees is also allowed u/s 80D. (preventive health examination fee). In this one no insurance, no hospitalization, etc. For the 2018 to 2019 financial year, the standard deduction of ₹40,000 has been announced for the reimbursement of travel and medical expenses and other relevant allowances for pensioners and employees. The standard deduction claim does not require a person to submit medical bills to their business.
Funds received through a health insurance claim are only a reimbursement of expenses already incurred by the policyholder. Since it is not a profit or income for the insured, this money is not taxable. Income tax jargon confuses many people. One of these confusions is medical reimbursement and medical allowance. While the medical reimbursement for each illness was tax-free up to Rs 15,000 u/s 17 (2) of the Income Tax Act until last year, the medical allowance was fully taxable. However, individuals can claim all benefits without actual expenses or even on sickness benefits. I received medical reimbursement for my father`s heart surgery 1.75,000 from the state government. Do I want to pay taxes on this refund? No, the health insurance premium is different from the medical reimbursement.
The Mediclaim premium paid is subject to the deductions referred to in Section 80D of the Income Tax Act 1961. I am an employee of the state government and I did not receive any medical allowance from the government, I had spent 250,000 rupees on my mother`s angioplasty treatment in the state-approved private clinic and after the sanction of the authority, I also received 200,000 rupees from the state government for medical reimbursement Now the issue is that, this amount is taxable or earned Sir Good evening. I am a servant of the Tamilnadu state government. The employee spent money on the health of his family and himself and submitted the invoice and reimbursed the employer`s expenses (15% of the base salary only for the fiscal year). Medical assistance is not intended for those who receive medical reimbursement. My question is the amount above, which means that the amount of medical reimbursement is taxable or not. .