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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?

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? Correct Answer 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. 

Additional Information

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

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