how is the unclaimed medical reimbursement amount treated at the end of the financial year in you companies. which is the ideal way
1. To give it to the employee along with his March salary after deduction of applicable tax as he has not submitted an bills to claim the same.
2. Amount to be lapsed and not given out to him during the month of march or any time during the year since he has not put in his bills to claim.
3. The amount can be carried forward upto end of next financial year and can be claimed int the coming year after submission on bills.
kindly give a replyas to what is followed in your companies. also which is the solution as per law.
thanks and regards
Rekha
From India, New Delhi
11. To give it to the employee along with his March salary after deduction of applicable tax as he has not submitted an bills to claim the same.
2. Amount to be lapsed and not given out to him during the month of march or any time during the year since he has not put in his bills to claim.
3. The amount can be carried forward upto end of next financial year and can be claimed int the coming year after submission on bills.
kindly give a replyas to what is followed in your companies. also which is the solution as per law.
thanks and regards
Rekha
From India, New Delhi
Hi, The ideal way is tho pay the amount to the employees ubject to tax as applicable. Regards, Suvarna
From India, Bangalore
From India, Bangalore
Some Companies allow Medical Reimbursement as additional benefit which is not treated as part of CTC. In such situations, the balance entitlement must lapse at the end of the financial year (as the case may be.As there are Tax concessions on it up to Rs. 15000.00 in a year, it is better to keep the year as Financial Year.).
Some Companies treat it as part of CTC. In such situations, it should not lapse because otherwise employee will not get what was his due. So either it has to be carried forward or it to be paid alongwith other taxable income. Better would be to allow its accumulation up to certain limit because main purpose of this reimbursement is to help employee in case of medical treatment quantum of which in monetary terms can not be predicted. Occurence also can not be predicted. But accumulation beyond a limit could put sudden pressures on the finances of the Company. Therefore a balance is required. Therefore, put a limit on accumulation and if unclaimed amount exceeds this limit pay the excess amount with wages.
KKT
From India, Delhi
Some Companies treat it as part of CTC. In such situations, it should not lapse because otherwise employee will not get what was his due. So either it has to be carried forward or it to be paid alongwith other taxable income. Better would be to allow its accumulation up to certain limit because main purpose of this reimbursement is to help employee in case of medical treatment quantum of which in monetary terms can not be predicted. Occurence also can not be predicted. But accumulation beyond a limit could put sudden pressures on the finances of the Company. Therefore a balance is required. Therefore, put a limit on accumulation and if unclaimed amount exceeds this limit pay the excess amount with wages.
KKT
From India, Delhi
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Medical Reimbursement Format.doc
ESIC Form-Medical Expense Reimbursement.p df