If we need to pay an employee an amount of 25k INR for his hospital bills as a reimbursement, is it taxable?
A Reimbursement is compensation paid out by an organization for the expenses made by an employee from his or her own pocket. Reimbursement of business expenses overpaid taxes, and insurance costs are the most common examples. One should note that reimbursement is not subject to taxation
And this comes as a Medical Reimbursement.