About medical allowance exemption

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Querist : Anonymous

Querist : Anonymous (Querist)

24 February 2015 My friend getting Medical Allowance of Rs 3500 Yearly is it taxable or not & under what section

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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24 February 2015 Medical allowance is taxable.
Instead of fixed Medical Allowance, always opt for reimbursement of Medical Expenses. For claiming reimbursement, you will be required to submit valid medical bills to your Employer. Some companies, instead of taking actual physical medical bills from the employees, just take declaration to the effect that the employee has actually incurred medical expense for self or family. In this case the Employee is required to maintain the actual medical bills and may be required to present the same to the Income Tax authorities in case of any scrutiny of the Income Tax Return.

Please note that Medical Expense Reimbursement of Rs. 15,000 is over and above the deduction under under Section 80D of the Income Tax Act available for Medical / Health Insurance Premium - Mediclaim Premium.