Will medical reimbursment included in Gross salary?
Here 2 things are important
1) Is employer having medical Insurance scheme, wherein medical exp is being reimbursed? If the answer is yes, then within the specified limits/ proviosions of sec 17 (2) this amount will be not taxable
2) Is employer directly reimbursing the medical bills and not under insurance scheme? If yes, similar is the case where sec 17(2) defines to exclude medical reimbursement within specified clauses / limits.
Source(s):
Income tax act 1961 as applicable for AY 2007-08, Income tax ready Reckoner
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