Is Medical reimbursement taxble?

Is Medical reimbursement taxble?

My father retired Govt employee from Andhra Pradesh. My father died on 12/11/2017 due to illness. After that my mother starts getting a family pension. My mother spent nearly 5 lakhs for my father treatment. After my father death my mother got 1,55,000 as Medical reimbursement. Now my question is "my mother has to show this Medical reimbursement money as income"? IF yes, where should she mention this Medical reimbursement money in ITR1(in which field)... does she get any exemption out of this 1,55,000?
psl clarify my doubt...pls reply asap.

Asked 5 years ago in Income Tax

Dear Sir,

Hope you are doing well !!

As per an amendment in the Budget 2018, tax exemption on medical reimbursement amounting to INR 15,000 and transport allowance amounting to INR 19,200 in a financial year have been replaced with a standard deduction of INR 40,000.

This amendment became applicable from FY 2018-19 (i.e. starting 1st April 2018).

From FY 2019-20 onwards, the standard deduction has been raised to Rs. 50,000. (Amended in Budget 2019).

So, even if there is some reimbursement of medical expenses on normal treatment and medicines, you will not be able to get any tax benefit as the reimbursed amount will be treated as perquisite and will be taxed accordingly.

However, apart from this, tax benefits on account of medical expenditures may be availed as per other sections or income-tax rules.

Payal Chhajed

CA, Mumbai

5188 Answers

299 Consultations

Talk to Payal Chhajed

My mother got Medical reimbursement money 1,55,000 on 06/07/2018.

Asked 5 years ago

Hi,

from the FY 2018-19 onwards, any medical reimbursement received is taxable as perquisite. however, standard deduction of 50,000 will be applicable for every employee.

Navya Tejas

CA, Bangalore

45 Answers

Talk to Navya Tejas

Who has given the reimbursement to your mother? Your father's employer or Medical insurance company?

Lakshita Bhandari

CA, Mumbai

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Talk to Lakshita Bhandari

My father employer(Andhra Pradesh Govt) gave 1,55,000 to my mother as Medical reimbursement.
Will she get any exemption out of this 1,55,000?
where should she mention this Medical reimbursement money in ITR1(in which field)...

Asked 5 years ago

This is more in nature of Death compensation rather than Medical reimbursement therefore i think you must claim it just as capital receipt not taxable in income tax.

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