My salary structure contains Rs. 1250 per month under 'Medical Allowance'. That amount was paid with my monthly salary, and tax is deducted on that as TDS. Now, at the end of the financial year, I have medical bills of Rs 15,000. Upon submitting the IT Return, can I deduct this Rs 15,000 under any head?
One accountant told me that it has to be processed with the company and no tax benefit is available as it was mentioned as 'Medical Allowance' in the payslips. Please advise.
Thanks,
From India, Ernakulam
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One accountant told me that it has to be processed with the company and no tax benefit is available as it was mentioned as 'Medical Allowance' in the payslips. Please advise.
Thanks,
From India, Ernakulam
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Dear,
If any deduction under medical allowance is made from your salary, then it comes under tax benefit. However, if it is paid with your salary, then it is just a salary head used to divide your salary, such as basic, HRA, Transportation Allowance, Education Allowance, LTA, Medical Allowance, etc.
Thanks
From India, Jaipur
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30If any deduction under medical allowance is made from your salary, then it comes under tax benefit. However, if it is paid with your salary, then it is just a salary head used to divide your salary, such as basic, HRA, Transportation Allowance, Education Allowance, LTA, Medical Allowance, etc.
Thanks
From India, Jaipur
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Hello,
Based on my knowledge, the salary head "Medical Allowance" does not provide any tax benefits. However, the "Medical Reimbursement" head can offer tax relaxations if your employer provides relaxations on medical expenses. If your employer is using the term "Medical Allowance" incorrectly, it may not be the right practice.
I suggest you communicate with your employer to use the term "Medical Reimbursement" instead.
Seniors, please advise on this matter.
Thank you.
Regards,
Ashish
From India, Pune
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Based on my knowledge, the salary head "Medical Allowance" does not provide any tax benefits. However, the "Medical Reimbursement" head can offer tax relaxations if your employer provides relaxations on medical expenses. If your employer is using the term "Medical Allowance" incorrectly, it may not be the right practice.
I suggest you communicate with your employer to use the term "Medical Reimbursement" instead.
Seniors, please advise on this matter.
Thank you.
Regards,
Ashish
From India, Pune
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Hi all,
My question is regarding the financial year. The employer paid me Rs. 15,000 under Medical Allowances (just a part of my salary) and deducted TDS on it. Now, I have medical bills amounting to Rs. 15,000 on hand. Can I claim a tax benefit and a refund directly from the income tax department by deducting it from the taxable income in the IT return?
Thanks,
JT
From India, Ernakulam
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My question is regarding the financial year. The employer paid me Rs. 15,000 under Medical Allowances (just a part of my salary) and deducted TDS on it. Now, I have medical bills amounting to Rs. 15,000 on hand. Can I claim a tax benefit and a refund directly from the income tax department by deducting it from the taxable income in the IT return?
Thanks,
JT
From India, Ernakulam
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It is not possible to claim a tax benefit now, as your TDS has already been deducted, and the Form 16 must have been issued to you showing the Taxable Income from Salary. You cannot alter the Taxable Income certified by your employer.
From India, Ahmadabad
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From India, Ahmadabad
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Saji says taxable income certified by the employer cannot be changed. If I have other income then I can declare it in the IT return, in the same way can’t I request for a refund? Thanks, JT
From India, Ernakulam
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From India, Ernakulam
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Hello Jusmas,
I have just talked with my CA, and he told me that we can file the pending amount whether you had claimed through the employer or not. Please consult with a consultant. At the time of refund, the IT officer may ask you for proof of medical reimbursement.
Thanking you,
Regards,
Ashish
From India, Pune
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I have just talked with my CA, and he told me that we can file the pending amount whether you had claimed through the employer or not. Please consult with a consultant. At the time of refund, the IT officer may ask you for proof of medical reimbursement.
Thanking you,
Regards,
Ashish
From India, Pune
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It is not Medical Reimbursement; it is Medical Allowance, which the employer must have taken in the head called Income from Salary. So accordingly, the employer has deducted the TDS. Please do keep in mind that it is the duty of the employer to deduct tax with regard to salary.
From India, Ahmadabad
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From India, Ahmadabad
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Hi Saji,
Yes, I admit that the employer has just deducted the tax from the Medical allowance, nothing wrong in it. My attempt is to know any possibility to claim the tax exemption directly to the IT dept on the same medical allowance, which I didn't get from the employer. Some people told me that I can't; the only possibility was if it was 'Medical Reimbursement' in payslips, but it is 'Medical Allowance' actually. From the responses I am getting here, I think I can still claim the Rs 15,000 for tax exemption from the total taxable income indicated in the Form 16 by the employer. Am I right?
From India, Ernakulam
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Yes, I admit that the employer has just deducted the tax from the Medical allowance, nothing wrong in it. My attempt is to know any possibility to claim the tax exemption directly to the IT dept on the same medical allowance, which I didn't get from the employer. Some people told me that I can't; the only possibility was if it was 'Medical Reimbursement' in payslips, but it is 'Medical Allowance' actually. From the responses I am getting here, I think I can still claim the Rs 15,000 for tax exemption from the total taxable income indicated in the Form 16 by the employer. Am I right?
From India, Ernakulam
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