I am a Government Employee working in an autonomous body.
My employer has deducted income tax on medical reimbursement for IPD medical treatment of my wife and son which required hospitalization.
The treatment falls under Section 17 of income Tax which says
“in respect of the prescribed disease or ailments as provided in Rule 3A(2) of the Rules in any hospital approved by the Chief Commissioner having regard to the prescribed guidelines as provided in Rule 3(A)(1) of the Rules.”
I have submitted the tax exemption circular of the hospital issued by Chief commissioner of Income Tax and discharge summary which clearly establishes that the disease falls in exemption category.
Now the employer has deducted income tax my question is how I can claim the refund in my Income tax return.
please guide me in this matter as tax levied to me is 2,41,000
If you have claimed reimbursement under a recognised policy of govt i.e. CGHS or AMA, then the whole amt is exempted. Pls refer IT circular on TDS on salaries in this regard. If it is something else, then first 15000 only is exempted. However if employer had made mistake you can correct it in the ITR, i.e. file as if it was allowed by employer in form 16. you will get refund.