As per Income Tax Act, an individual can claim up to Rs. 15,000 as medical allowance for his/her medical treatment. It may be paid to the employee irrespective of the claims made by him/her.
Well, there is a difference between medical allowance and medical reimbursement. Medical reimbursement is the amount paid by the employer to his/her employees for their medical expenses. This tax-free amount should not be more than Rs. 15,000. Any amount above Rs. 15,000 will be taxed as perquisites. Medical reimbursement can be claimed only if actual expenses have been incurred by the employee or their family.
If your employer doesn’t provide reimbursement, then you can claim reimbursement under section 80D. The maximum amount that can be claimed under this section is Rs. 25,000 for self or dependent family members, in case of senior citizens, up to Rs. 30,000 can be claimed. You need to make sure you submit all your medical bills to get medical reimbursement.
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