TDS deducted on medical reimbursement paid by company – Not Fair

POSTED BY Satishshm ON March 22, 2015 11:50 pm COMMENTS (2)

My father got cancer and he has spent more than 20 lacs for the treatment. He submitted his medical bills to the company(PSU). The company has paid around 12 lacs, but they have treated this as income and deducted 30% as tax (according to his slabs)

He passed away recently. I feel that the tax on the reimbursement amount is not fair. Can we get the money back from IT when filing returns?

Also, who is authorized to file the IT returns?

2 replies on this article “TDS deducted on medical reimbursement paid by company – Not Fair”

  1. Satishshm says:

    Hi Manish,

    Thanks for the answer. I checked with the company. The mentioned this clause
    http://mpintranet.bsnl.co.in/new/policy.htm#Taxability

    Can we claim the tax back while filing ITR?

  2. I think its totally unfair .

    It was a reimbursement and not an income. I am not sure why the companies officials have deducted the TDS part . Try to check it out from them if they have really deducted it and paid on your name or not . If they have, then yes – you should file for returns and claim it back.

    You can hire a CA to file your returns .

    Manish

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