Medical allowance
This query is : Resolved
27 March 2012
Hello
My query is that if any company is paying medical allowance on monthly basis but collecting the bills against the same at the end of year, then whether it should be included in monthly taxable income or not.
My query is that if any company is paying medical allowance on monthly basis but collecting the bills against the same at the end of year, then whether it should be included in monthly taxable income or not.
27 March 2012
It is required to be included provided you have ensured that at the end of the year you have taken the bills.
28 March 2012
Dear Ankit,
Medical Allowance is taxable like any other allowance whereas Medical Reimbursement is not taxable to the extent of Rs 15,000/- under Income Tax Act. So instead of Medical Allowance demand for Medical Reimbursement in your pay –slip.
Even Finance bill-2012 has introduced the Exemption on Preventive health check-up to the extent of Rs 5000/- so that you can take the benefit of same by submitting relevant bill copy in FY 2012-13.
Medical Allowance is taxable like any other allowance whereas Medical Reimbursement is not taxable to the extent of Rs 15,000/- under Income Tax Act. So instead of Medical Allowance demand for Medical Reimbursement in your pay –slip.
Even Finance bill-2012 has introduced the Exemption on Preventive health check-up to the extent of Rs 5000/- so that you can take the benefit of same by submitting relevant bill copy in FY 2012-13.
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