11 April 2010
One of our Employee is Having own house but he is residing in a rented house and his house is given for rent to others.
my question is the allowance of HRA is Applicable or not for the Above Employee either it is fully taxable or not and he is paid for the rented house rs 8000 pm
the other employee is arguing he is having medical bill pertaining to his father medical treatment and our company is not given any medical allowance to him
my question is the medical expenses is reimbursed by employer then only it is a tax free or not
11 April 2010
If the employee residing rental house and producing the rent receipt you can allow the HRA exemption claim and if he wants show his house property income that also you can consider and based on that you can calculate the tax and deduct for claiming Medical bills the employee has to get the medical reimbursment from the employer as his part of salary and if the employer providing as medical allowance that is fully taxable against that he cannot claim any medical bills
11 April 2010
you can give HRA exemption if he is providing rent receipt. if co is giving medical reimbursement then till 15000/- (fifteen thousand) it is tax free but medical allowance is fully taxable.
CAclubindia
