17 January 2012
A wife received medical reimbursement (Cost of pacemaker) after death of her husband due heart failure from Govt. Office where her husband was working. Whether this amount is taxable in the hand of wife, if no so pls. mention section as per IT Act 1961.
21 January 2012
The amount received from employer of husband on account of medical reimbursement is not taxable in hands of wife.
Even otherwise, since the husband was government employee, the reimbursement would be under one of the government schemes (I presume as Government does not reimburse with sanction of relevant Govt Hospital or CGHS hospital).
Reimbursements in case of specified diseases (incl hear ailment) are exempt from tax under proviso (ii) to clause (viii) of section 17(2) of I T Act read with Rule 3A(2) subject to fulfilment of conditions therein.