Medical Allowance & LTA

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bhagwati saran (Querist)
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14 March 2009 Dear All,

My Company is paying to one employee as a monthly Basic Salary Rs. 20000/- P.M. Medical Allowance Rs. 5000/- P.M. and Local Travel Allowance Rs. 5000/- P.M. from 1-4-08 to 31-3-09.

I have to compute tax liablity for the f. y. 2008-09 for Tax Deduction at Source u/s 192.

Are medical Allowance & LTA fully taxable.

if the Employee submit bills for Rs. 20000/- of Medical expenses and 40000/- of Local Tavel Expenses then how much amount of both allowances will be taxable.

Thanks
Saran

HUZAIFA HUSSAIN

HUZAIFA HUSSAIN (Expert)
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14 March 2009 HI

MEDICAL ALLOWANCE IS EXEMPTED UPTO RS. 15000/- PA ie., RS.1,250/- PM ONLY SUBJECT TO SUBMISSION OF BILLS. AND TRAVEL ALLOWANCE TO COMMUTE FROM RES.TO OFFICE IS EXEMPTED UPTO RS.800/-PM ie., RS.9600/-PA.