Accounting Entry for Mediclaim recvd from Insurance Company

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  1. rl334709

    rl334709 New Member

    An individual has paid premiums for his medical insurance-- MEDICLAIM, for last three years .

    In third year, after paying premium, he gets admitted into hospital for an operation.
    After discharge, he submits a claim for expenses of hospital and medicines.

    His claim gets approved, and the claim amount gets credited into his bank account.

    Now, while filing income tax return,
    is this amount of claim approved , to be shown as income of this individual?

    He has received the claim amount in return of the premiums paid by him.
    Then is this claim amount , to be added to his total income for the income tax purpose?


    AND

    How the account entries should be made about such claim amount ?
     
  2. VAIBHAV DILIP RANE

    VAIBHAV DILIP RANE Active Member

    Medical Reimbursement from a General Insurance Company can be shown as below:
    A] Reimbursement Received Rs. XXX
    B] (-) Medical Expenses Incurred Rs. XXX

    So simply do A (minus) B if you get positive amount than it is income show under IFOS, and if you get Negative or Zero Amount than No income.
     
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