Sunday, August 21, 2016

Income Tax Medical Bills Exemption

The Income Tax Act allows individuals to claim various tax deductions and tax exemptions. A prominent exemption pertains to medical expenses incurred by an individual, for self and family, during a given financial year. Medical bills of salaried employees, reimbursed by employers, are not taxable. You do not have to pay tax on up to Rs.15,000 in a financial year if you submit medical bills for the same amount to the employer. The main conditions for claiming this exemption are:

.Medical bills incurred for self, spouse and children can be submitted for reimbursement. Medical bills of parents and siblings who are wholly dependent on the employee can also be claimed as reimbursement.

.These bills could be for the purchase of medicines from pharmacies and medical shops, or medical treatment taken at public or private hospitals and clinics.

.Medical bills should be reimbursed by the employer. You cannot submit medical bills to the IT department to claim reimbursement during the income tax return-filing process.

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