HSMP Refusal Due to More Earning

[kunduanil]

I have applied my HSMP last month and I have claimed 45 points for earning. But in my salary slips my employer has also shown Medical Reimbursement. Hence my total income (which is sum of 12 months ) is more than than my taxable income. In INDIA Medical Reimbursement is not a part of one's income and I have made this point clear to HSMP Team and still HSMP team has refused my case. Can anyone please suggest what to do now.

[saratbabu07]

Dear friend,

Sorry to hear about the rejection of your application. But let me correct you in India medical reimbursements are very much part of ones salary.
Only if you declare the medical reimbursement in your TDS will you be able to claim the reimbursement. And if you don`t declare it then it will become a taxable amount.

Regards,
Sarat Babu

[VictoriaS]

If you think that you are right then you can appeal, and the case will be reviewed by someone more senior.

Victoria

[kunduanil]

Hi saratbabu07,

Any reimbursement is not income either Medical or any other sort. If it would have been income than employer could have shown this amount in Form 16 as Income.
Anyway I have applied for Review and still rejected refusal.

Regards
Anil

[vs007]

I have applied my HSMP last month and I have claimed 45 points for earning. But in my salary slips my employer has also shown Medical Reimbursement. Hence my total income (which is sum of 12 months ) is more than than my taxable income. In INDIA Medical Reimbursement is not a part of one's income and I have made this point clear to HSMP Team and still HSMP team has refused my case. Can anyone please suggest what to do now.

what is the reason mentioned in the letter for refusal.