Sir, Please advise whether the money received from insurance company on submission of hospital bills under Medical policy liable for tax and does it require to be declared in the return under Income Tax Act? If yes, under what head and as what it has to be declared?

Ans: Hi, you can claim the tax for health insurance plans under section 80D. The tax exemption is of upto Rs.25000/-. Anybody who falls under the tax bracket can avail such tax benefit.

Ans: I think you have misunderstood the tax change. This is applicable for new policies that you invest into from the next financial year(FY). This budget changes the taxation on the returns from the policies if premiums on the new policies from the next FY is above Rs 5 lakh.
Detailing this change- If aggregate of premium for insurance policies (other than ULIP) issued on or after 1st April 2023, is above Rs 5 lakh, income from only those policies with aggregate premium up to Rs 5 lakh shall be exempt.
Note that the deductions for insurance premiums (investment) under Section 80C and Section 80D are still available under the old tax regime.

Ans: Hello Mr. Amit Arora,

I understand that you're seeking guidance regarding the tax implications on your mother's medical reimbursement. The tax treatment for medical reimbursements in India is a bit nuanced.

Typically, under section 17(2) of the Income Tax Act, any amount reimbursed by the employer towards medical expenses incurred on the treatment of the employee or their family members is exempt from tax, subject to a limit of Rs. 15,000 per annum. However, this is applicable only when actual medical bills are submitted.

In your mother's case, as she's receiving the amount without submitting any bills, this will not qualify for tax exemption under section 17(2). Therefore, the entire sum of Rs. 60,000 will be treated as her income from salary and will be subject to tax according to the tax slab she falls under.

I hope this helps.

Best Regards.

Ans: It's tax free