FBT ON MEDICAL ALLOWANCE

This query is : Resolved

Ravi Kiran (Querist)
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21 May 2008 Dear Sir,

1) Our Company is giving Medical Allowance of Rs 15000/- as part of Salary Can we Claim deduction Claim Exemption if yes than how much is and for that any proof is to be provided.

2)Is FBT is Payable by the Company on the above Medical Allowance.

Regards

Ravi Konda

CA. Vineet Grover

CA. Vineet Grover (Expert)
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21 May 2008 Hi Ravi,

(1) You may claim exemption upto Rs.15000/- provided you submit original medical bills.

(2) FBT is payable by the compnay upto Rs.15000/-. As medical re-imbursements above Rs.15000/- is taxable in the hands of the employee, FBT is not charged on the amount exeeding Rs.15000/-

Rgds/
Vineet