• Regarding medical treatment reimbursement

Sir my employer give Rs.315000 against medical bills treatment of my dependent father of heart bypass surgeory.hospital is approved by cheif commissioner of IT.ALL the receipts and bills are kept by originally.allthe amount given to hospital by account.Is this medical reimburshment is taxable,i have all the original document of treatment.I am PSU employee.
Asked 8 years ago in Income Tax

As per our view the same will be taken care in your form 16.

Shyam Sunder Modani
CA, Hyderabad
1409 Answers
164 Consultations

Dear Sir,

Amount paid for medical treatment of your dependent father is not taxable in your hand. You should instantly get this thing corrected from your employer.

please refer below:

Expense incurred or reimbursed by the employer for the medical treatment of the employee or his family (spouse and children, dependent - parents, brothers and sisters) in any of the following hospital is not chargeable to tax in the hands of the employee:

i. Hospital maintained by the employer.

ii. Hospital maintained by the Government or Local Authority or any other hospital approved by Central Government

iii. Hospital approved by the Chief Commissioner having regard to the prescribed guidelines for treatment of the prescribed diseases.

Abhishek Dugar
CA, Mumbai
3576 Answers
183 Consultations

Sir the bills and other details is to be provided to the company to be taken care in form 16.

Shyam Sunder Modani
CA, Hyderabad
1409 Answers
164 Consultations

Dear Sir,

No the amount is not taxable in your hand as the Hospital is approved by the Chief Commissioner of Income Tax and the amount is directly paid to the hospital and you did not have any personal benefit in the transaction.

It is advised to please get your Form 16 rectified by your Company in order to avoid further complications.

Trust this clarifies your query.

Feel free to get back/ call back for any further clarifications.

Thanking You.

Regards,

Rohit R Sharma

BCOM, ACA, LLB - GEN, CERT. FAFP

Rohit R Sharma
CA, Mumbai
2104 Answers
95 Consultations

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