11 June 2010
Dear Experts, I am a salary employee and getting Hospitalization & Medical reimbursement. Do it is taxable or not ? in which sec. (80D 15000/- max. HRA :- I have received hra rs. 28600/- rent paid for the year 30000/- and 10% of basic + D.A + T.A is Rs. 37148/- 1. Do I can claimed hra or not ? 2. Do I have to add HRA in Gross Salary or in HRA Excemption Sec. ?
11 June 2010
Section 17(2)defines perquisites both taxable and non taxable perquisites.
1.If an employer paid any sum in respect of any expenditure actually incurred by the employee on his medical treatment or treatment of any family member in any hospital maintained by Govt or approved govt hospital for yje prescribed dieseas approved by Cheif Commissioner, the said sum paid is exempted and not taxable in the hands of employee
2.any sum paid by employer in respect of any expenditure actually incurred by the employee on his medical treatment or treatment of any family member not exceeding Rs. 15000/- in a previous year is ot an perquisites and hence not taxable in th ehands of the employee.
If you Rent paid is lesser than 10% of salary, nothing is allowable u/s 10(13A) of the IT Act and total HRA received is taxable.
Salary here do not include TA.DA is included only of the terms of the employment so provide. Please check in your case whether DA is included or not.
CAclubindia
