13 March 2009
As per the provisions of the IT Act, 1961, Medical allowance given to an employee is taxable in his hands. However, reimbursement of medical expenses upto Rs. 15,000/- is exempt from levy of tax since the same is perks u/s. 17 of the IT Act, 1961. Reimbursements towards medical expenses over and above is taxable in the hands of employee
CAclubindia
