Dear All,
I am new to this work environment, I have certain uncleared doubts with the CTC and the reimbursements. In our office portal there is a space for Medical reimbursement in which I am eligible up-to 15K and that is common for all (correct me if I'm wrong), for the current year 2011-2012 I claimed this medical reimbursement for 15K but i had submitted bills for 10K (they have approved the bills for 10K) and rest of the amount 5K bills are yet to be submitted. While declaring those things in the portal I found that the special allowances given to me has been reduced to nearly 7 thousand. (Before declaring that medical reimbursement my special allowance was 20k and after declaring my medical reimbursement to 15K special allowance has been decreased to 13K) I have no idea what is this all about and can anyone please explain regarding this!
Thanks in Advance!
From United States, Naperville
I am new to this work environment, I have certain uncleared doubts with the CTC and the reimbursements. In our office portal there is a space for Medical reimbursement in which I am eligible up-to 15K and that is common for all (correct me if I'm wrong), for the current year 2011-2012 I claimed this medical reimbursement for 15K but i had submitted bills for 10K (they have approved the bills for 10K) and rest of the amount 5K bills are yet to be submitted. While declaring those things in the portal I found that the special allowances given to me has been reduced to nearly 7 thousand. (Before declaring that medical reimbursement my special allowance was 20k and after declaring my medical reimbursement to 15K special allowance has been decreased to 13K) I have no idea what is this all about and can anyone please explain regarding this!
Thanks in Advance!
From United States, Naperville
Dear Shiva Shankar,
The best you can do is to go and talk to your HR or payroll department for an explaination regarding the issue. Dont forget to carry the proof of before and after scenario. They should be able to explain you well.
Regards
Sapna
From India, Ahmadabad
2The best you can do is to go and talk to your HR or payroll department for an explaination regarding the issue. Dont forget to carry the proof of before and after scenario. They should be able to explain you well.
Regards
Sapna
From India, Ahmadabad
Some companies in India give a kitty of Allowances (its a combination of HRA, Conveyance, Medical, LTA etc) which employee needs to decide the amount as per his/her exp limits.
In your case Medical has kept as a part of special allowance and hence once claimed they have reduced the limit of special allowance.
However, as you have provided the bills worth 10000 only, you will get the tax benefit for 10000 only and rest 5000 will be taxed in your hand.
Pravin Nagpal
From India, Pune
In your case Medical has kept as a part of special allowance and hence once claimed they have reduced the limit of special allowance.
However, as you have provided the bills worth 10000 only, you will get the tax benefit for 10000 only and rest 5000 will be taxed in your hand.
Pravin Nagpal
From India, Pune
Dear Shivashankarsukumar
Kindly note that "Under Section 17(2) of the Income-tax Act, reimbursement made by an employer of upto Rs.15,000 of medical expenses in a year, actually incurred by an employee on his medical treatment or the treatment of any member of his family, is treated as an exempt perk".
This is the provision of Section 17 (2) of IT Act, where in it is clearly mentioned that the Expenses Incurred - in this case you will have to submit the supporting to the Expenses incurred is the Medical Bills of you or your dependents during the particular period.
In many companies the declaration is obtained from the Employee. In some cases, the Employer needs the Bill Copies- nothing wrong in it. As the delegation of authority is here from IT Department to Employer to see the fact and give the benefit.
Ramakant.
From India, Pune
Kindly note that "Under Section 17(2) of the Income-tax Act, reimbursement made by an employer of upto Rs.15,000 of medical expenses in a year, actually incurred by an employee on his medical treatment or the treatment of any member of his family, is treated as an exempt perk".
This is the provision of Section 17 (2) of IT Act, where in it is clearly mentioned that the Expenses Incurred - in this case you will have to submit the supporting to the Expenses incurred is the Medical Bills of you or your dependents during the particular period.
In many companies the declaration is obtained from the Employee. In some cases, the Employer needs the Bill Copies- nothing wrong in it. As the delegation of authority is here from IT Department to Employer to see the fact and give the benefit.
Ramakant.
From India, Pune
I would like a clarification regarding the matter mentioned below.
My husband had a heart attack on 2nd feb at 10.30 pm and was admitted in wockhardt hospital Nagpur. he had to undergo angiography and angioplasty immediately. The hospital provided an estimate of 3 lac. Due to the emergency situation I availed the cash less facility of my husbands insurance which amounts to 2 lac. Since my husband had two blocks 2 stents had to be used and the estimate reached 4.98lacs.His insurance company paid only 1.4 lacs.I had to pay the remaining 3.58 lac.I would like to know if I could claim the remaining 3.58 lac from regional office of kendriya vidyalaya?
From India, Nagpur
My husband had a heart attack on 2nd feb at 10.30 pm and was admitted in wockhardt hospital Nagpur. he had to undergo angiography and angioplasty immediately. The hospital provided an estimate of 3 lac. Due to the emergency situation I availed the cash less facility of my husbands insurance which amounts to 2 lac. Since my husband had two blocks 2 stents had to be used and the estimate reached 4.98lacs.His insurance company paid only 1.4 lacs.I had to pay the remaining 3.58 lac.I would like to know if I could claim the remaining 3.58 lac from regional office of kendriya vidyalaya?
From India, Nagpur
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