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Hardik

Hardik Parikh  |106 Answers  |Ask -

Tax, Mutual Fund Expert - Answered on Jul 20, 2023

Hardik Parikh is a chartered accountant with over 15 years of experience in taxation, accounting and finance.
He also holds an MBA degree from IIM-Indore.
Hardik, who began his career as an equity research analyst, founded his own advisory firm, Hardik Parikh Associates LLP, which provides a variety of financial services to clients.
He is committed to sharing his knowledge and helping others learn more about finance. He also speaks about valuation at different forums, such as study groups of the Western India Regional Council of Chartered Accountants.... more
AMIT Question by AMIT on Jul 17, 2023Hindi
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Sir my mother received a fixed amount of aprx Rs.15000 every quarter for medical reimbursement without submitting any bills from the employer after the retirement (Total Rs.60,000 for the financial year). What will be the tax applicable on this reimbursement. Whether we have to add Rs.60000/- in full as as part of salary in income tax return OR can we take any deduction under 17(2) of IT act or any other act. The taxability may please be informed for FY 2022-23 AY 2023-24 or for further financial years. Thanks AMIT ARORA

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.
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Step-by-Step Guide to Check Your Admission Chances Using JoSAA Data
Step 1: Collect Your Key Details
Before starting, note down the following details:

Your JEE Main percentile | Convert the Percentile to AIR, based on the Formula available in Google.
Your category (General-Open, SC, ST, OBC-NCL, EWS, PwD categories)
Preferred institute types (NIT, IIIT, GFTI)
Preferred locations (or if you're open to any location in India)
List of at least 3 preferred academic programs (branches) as backups (instead of relying on just one option)
Step 2: Access JoSAA’s Official Opening & Closing Ranks
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Click on the first search result (official JoSAA website).
You will land directly on JoSAA’s portal, where you can enter your details to check past-year cutoffs.
Step 3: Select the Round Number
JoSAA conducts five rounds of counseling.
For a safer estimate, choose Round 4, as most admissions are settled by this round.
Step 4: Choose the Institute Type
Select NIT, IIIT, or GFTI, depending on your preference.
If you are open to all types of institutes, check them one by one instead of selecting all at once.
Step 5: Select the Institute Name (Based on Location)
It is recommended to check institutes one by one, based on your preferred locations.
Avoid selecting ‘ALL’ at once, as it may create confusion.
Step 6: Select Your Preferred Academic Program (Branch)
Enter the branches you are interested in, one at a time, in your preferred order.
Step 7: Submit and Analyze Results
After selecting the relevant details, click the ‘SUBMIT’ button.
The system will display Opening & Closing Ranks of the selected institute and branch for different categories.
Step 8: Note Down the Opening & Closing Ranks
Maintain a notebook or diary to record the Opening & Closing Ranks for each institute and branch you are interested in.
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Since Opening & Closing Ranks fluctuate slightly each year, always adjust the numbers for safety.
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Follow this approach for Other State candidates and different categories.
Pro Tip: Adjust your expected rank slightly lower than the previous year's cutoffs for realistic expectations during JoSAA counseling.

Can This Method Be Used for JEE April & JEE Advanced?
Yes! You can repeat the same steps after your April JEE Main results to refine your admission possibilities.
You can also follow a similar process for JEE Advanced cutoffs when applying for IITs.

Want to Learn More About JoSAA Counseling?
If you want detailed insights on JoSAA counseling, engineering entrance exams, preparation strategies, and engineering career options, check out EduJob360’s 180+ YouTube videos on this topic!

Hope this guide helps! All the best for your admissions!

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