Question

Medical expenses up to what amount can be claimed as deduction out of gross income to arrive at taxable income, for the financial year 2016-2017?
1. Rs. 15000
2. Rs. 20000
3. Rs. 5000
4. Rs. 10000

Answer 1

Correct Answer - Option 1 : Rs. 15000

The correct answer is Rs. 15000.

• The Income Tax Act allows tax exemption of up to INR 15,000 on medical reimbursements paid by the employer.
• Medical care expenses include payments for the diagnosis, cure, mitigation, treatment, or prevention of disease, or payments for treatments affecting any structure or function of the body.
• The exemption is available only on the reimbursement of actual expenses that are incurred on medical bills. 

• Chairman of CBDT - Pramod Chandra Modi.
• Minister of Finance - Nirmala Sitharaman.