I am aware that the salary structure for most employees of corporations in India consists of a section called medical which amounts to 15,000 rs. The implication of this is that employees can get tax relief on medical expenses such as root canals (dental), expenses on medicine, medical tests, etc.
Although, I recently found out the if you get a preventive health checkup done, then you will be reimbursed an amount upto Rs. 5000 for the same.
So here is my confusion. Is the 5000 rs for health checkup over and above the 15,000 rs limit for medical reimbursement? Let's say :
- I incur a cost of Rs 15,000 as dental expenses.
- I get a preventive health checkup done for 5000 rs.
Does this mean that I will be reimbursed 9500 rs? Basically, is the following calculation correct?
- Tax relief on medical expenses = 15,000 * 0.3 (30% tax bracket) = 4500 rs
- Reimbursement of health checkup expense = 5000 rs.
Total reimbursement to be provided by the employer = 4500 + 5000 = 9500 rs.
Is my understanding correct? Also, does this mean that when I submit the reimbursement form to my company, I should mention 20,000 under medical expenses? (15000 for medical expenses and 5000 for health checkup)