SALARY

This query is : Resolved

VIRAL (Querist)
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12 June 2010 SIR IF A EMPLOYEE RECEIVES SALARY FOR RS.20000.00 AND THE BREAKUP IS AS FOLLOWS. SO PLEASE INFORM WHICH IS TAXABLE OR NOT ?

BASIC 12000.00
SPECIAL ALLOWANCES RS.5950.00
CONVEYANCE ALLOWANCES RS.800.00
MEDICAL ALLOWANCES RS.1250.00

Aditya Maheshwari

Aditya Maheshwari (Expert)
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12 June 2010 Conveyance allowance exempt till Rs. 800/-. So exempt

Medical allowance deduction available subject to production of medical bills upto Rs. 15000/- for the year i. e. Rs. 1,250/- per month.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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13 June 2010 Dear Aditya sorry for interpreting your answer

Transport allowance only Rs.800 per month exempted but Allowance named as conveyance is exempted up to the offical usage - if you want i can provide realted circulars

Also fixed medical allowance is fully taxable only medical reimbursment is exempted of Rs.1250 per month or Rs.15000 per year

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