Medical reimbursement taxable to wife

This query is : Resolved 

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.

C. P. CHUGH (Expert)
17 January 2012

The word reimbursement itself suggest that you are being paid for the value which you have already expanded. Hence it is neither your income nor taxable.

Raj Kumar MakkadOnline (Expert)
18 January 2012

There is no mention of such reimbursement in Income Tax as this is perquisites attached with the service benefits.

Surendra Gupta (Expert)
18 January 2012

I agree with views of Shri C P Chugh

Vineet (Expert)
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.

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