Medical Reimbursement
Effective From 1st April 2018, Medical is fully taxable in hand of employee hence below contents un-relevant.
Medical reimbursement upto of Rs. 15000.00 per year made by an employer to employee are exempted from payment of income tax. For this employee has to claim this reimbursement.
Reimbursement is a receipt against the expenses already paid by an individual and allowance is an amount which is directly a part of monthly salary.
For claiming reimbursement of expenses, every employee is required to give undertaking or to submit bills to support the claim.
These expenses may be in shape of doctor’s consultation fee, purchase of medicines or payment of fee / charges towards pathological test. The expenses can be on him / her self or other dependents of the family including father, mother, or dependent brother sister.
To claim reimbursement employee must keep the support with him / her even though the same has not been asked for by the employer. Onus to prove is with the employee only because h/she is availing tax benefits from income tax authorities against these reimbursement.