I am working officer in government sector. Recently I suffered from covid-19, for which I received medical reimbursement of Rs.4lacs. Is this amount taxable under income tax act? If yes, how to save tax?
Ans: Medical Reimbursement from your employer is tax exempted only up to Rs. 15,000 above which the amount would form a part of the taxable income. You cannot directly save tax on the same, but could use the deductions available under section 80.
If on the other hand, the medical reimbursement is from a medical insurance company for a policy taken by you, it would be exempt from tax.