Medical Allowance
This query is : Resolved
17 November 2008
My Company is paying Rs.1,250/- every month to all employees in their pay slip. This amount has been treated as exempted while calculating tax liability. Without taking any proof/s for amount spent on medical expenses, my Company is taking declaration from employee that the amount received by the employee has been spent for the purpose for which it has been given. Will it be correct on the part of Income Tax Act/Law? What will be the end responsibility of Employee as well as Employer?
17 November 2008
Since its fixed, it is allowance. So taxable in hands of employees.
but if it is under medical bills re-imbursement, company will have to take bills from employees
but if it is under medical bills re-imbursement, company will have to take bills from employees
17 November 2008
Further,
Liable for FBT :
Expenditure actually incurred by the employee for medical treatment in an unapproved hospital upto Rs.15,000/- during the year.
Liable for FBT :
Expenditure actually incurred by the employee for medical treatment in an unapproved hospital upto Rs.15,000/- during the year.
17 November 2008
Not Liable for FBT :
Expenditure exceeding Rs.15,000/- during the year, actually incurred by the employee for medical treatment in an unapproved hospital.
Expenditure exceeding Rs.15,000/- during the year, actually incurred by the employee for medical treatment in an unapproved hospital.
17 November 2008
I believe it is to be treated in the hands of employee
18 November 2008
This 1250/- PM amount is Medical allowance & on submission of bills is tax free,
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- REGARDING GST ON COMMERICIAL PROPERTY
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- TDS U/S. 194NF
- GST on export of services and Input Credit
- ITC temporary reversal and reclaim
- Applicable TDS rate for sale of property in Nov 2024
- Tds on building rent monthly
- VERIFICATION OF REFUND RELATED
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
Trending Online Classes
CAclubindia
