Dear All,
I have shown medical bills for receiving medical reimbursement amount but it is not showing in Form 16.
I asked employer they said any reimbursement made cannot be a part of form 16.
My question is.. is it true?
If reimbursements are part of salary and if we show bills then It will not be mentioned in form 16.
If it is true then what is the reason behind that? And what if we don’t show bills then will it be a part of form 16?
Regards,
Siddharth
From India, Sangli
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4I have shown medical bills for receiving medical reimbursement amount but it is not showing in Form 16.
I asked employer they said any reimbursement made cannot be a part of form 16.
My question is.. is it true?
If reimbursements are part of salary and if we show bills then It will not be mentioned in form 16.
If it is true then what is the reason behind that? And what if we don’t show bills then will it be a part of form 16?
Regards,
Siddharth
From India, Sangli
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Dear Siddharth,
Yes, it is true that there are two types of payment for the Medical component:
1. By making monthly payments:
In this method, you will receive your Medical component monthly by declaring the amount as taxable in the Income tax computation sheet. The exemption, as per your declaration or bills submission, will be provided under Section 16 in Form-16.
2. By submitting bills monthly for reimbursement:
With this approach, you will receive your Medical component only upon submitting bills, and the amount will be held until March before being released as taxable but unclaimed in Form-16.
In your case, you have already submitted your necessary medical bills to your employer, and the amount reimbursed by the employer is non-taxable. Therefore, this amount will not appear in your Form 16.
Regards,
Chandrashekar Kulagana
From India, Bangalore
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Yes, it is true that there are two types of payment for the Medical component:
1. By making monthly payments:
In this method, you will receive your Medical component monthly by declaring the amount as taxable in the Income tax computation sheet. The exemption, as per your declaration or bills submission, will be provided under Section 16 in Form-16.
2. By submitting bills monthly for reimbursement:
With this approach, you will receive your Medical component only upon submitting bills, and the amount will be held until March before being released as taxable but unclaimed in Form-16.
In your case, you have already submitted your necessary medical bills to your employer, and the amount reimbursed by the employer is non-taxable. Therefore, this amount will not appear in your Form 16.
Regards,
Chandrashekar Kulagana
From India, Bangalore
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Hi Chandrashekhar,
Thanks for the information.
I am not clear about the first point because, as per my understanding, medical reimbursement will be mentioned in u/s 10 in Form 16 if it is a non-taxable amount. In the second point, in which section will it be mentioned as a taxable amount?
Regards,
Siddharth
From India, Sangli
Acknowledge(0)Amend(0)
Thanks for the information.
I am not clear about the first point because, as per my understanding, medical reimbursement will be mentioned in u/s 10 in Form 16 if it is a non-taxable amount. In the second point, in which section will it be mentioned as a taxable amount?
Regards,
Siddharth
From India, Sangli
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Income tax and form 16.xls