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Can I claim a deduction on all medical bills?
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April 13, 2005
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ImageMy company gives a medical allowance for which it requires original medical bills.

Recently, I produced a bill for a hearing aid for my father who is dependent on me.

But the company says hearing aid machines, spectacles, etc are not considered for allowance. Is it so?

- Balaji Venkatesh

Your employer seems to be correct. There is no law to this effect, but it works through circulars and notifications issued by the Income Tax authorities.

My company does not consider expenses towards donations and higher education loan repayment for Tax Deducted at Source, even if I give the required documents.

I am asked to apply accordingly and get the refund later. Why should it be an issue to consider these?

- Amit Saxena

Your employer could give you the benefit for higher education loan repayment, as there is no restraining provision for this benefit to be given through salary.

As far as donations are concerned, the employer can provide benefit only for specified national funds. Hence, other donations are generally taken by an individual independently in his/her personal Income Tax return.

My previous company has given me a salary certificate which doesn't show my investments under section 80CCC (Rs 10,000) and amount paid to Mediclaim.

Hence, my new company has not considered these in my tax computations. Can I show these in my returns?

- Pavan Kumar

Yes, you can claim both benefits while you file your personal income tax returns.

I worked in India till September 2004, and will have to file the income Tax return for the year 2004-2005 (April 2004 - September 2004).

I will now be abroad for a while before I return. During this time, I will receive my salary here. Do I still need to file a return in India while I am here?

- Prashant Joshi

As far as the current year is concerned, you seem to have been in India for less than 182 days before leaving for employment abroad.

Your status is deemed to be that of a non-resident Indian. Accordingly, your income outside India will not be taxed here. But the income earned in India will be taxable if it exceeds the threshold limit of Rs 50,000.

You need not file returns here in the subsequent years provided there is no taxable income in those years.

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Note: Questions may be edited for brevity. Due to the tremendous response, all queries will not be answered.

Illustration: Dominic Xavier


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