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Medical allowance

siva andhavarapu (ca final) (388 Points)

17 June 2017

HAI

MY FRIEND IS GETTING MEDICAL ALLOWANCE OF RS.28000 FROM HIS EMPLOYER.WHETHER IT IS FULLY TAXABLE OR EXEMPTION IS THERE?

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10 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177636 Points)
Replied 17 June 2017

Reimbursement of medical expenses actually incurred by an employee for his medical treatment or the treatment of any member of his family upto Rs. 15,000 per annum is not treated as a taxable perquisite as per Clause (v) of the Proviso to Section 17 (2) of the Income Tax Act.

BUT any amount of Medical Allowance is fully taxable.

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CA Rashmi Gandhi (Chartered Accountant) (86323 Points)
Replied 17 June 2017

Medical allowance is fully taxable. However meducal facility is exempted upto Rs 15000/- in a year.

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siva andhavarapu (ca final) (388 Points)
Replied 17 June 2017

TQ SIR AND MADAM

CAN YOU PLEASE TELL ME WHEATHER HE CAN TAKE RS.15000(NO REIMBURSMENT) BENEFIT EVEN HE IS GETTING MEDICAL ALLOWANCE.(ACTUALLY HE IS INCURRING 20000 AS MEDICAL EXPENSES FOR HIS FATHER)

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CA Rashmi Gandhi (Chartered Accountant) (86323 Points)
Replied 17 June 2017

No you cant do so as medical allowances are fully taxable & no deduction for actual expenses allowed.

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177636 Points)
Replied 17 June 2017

Not as medical allowance..........

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siva andhavarapu (ca final) (388 Points)
Replied 17 June 2017

TQ MADAM AND SIR

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CA Rashmi Gandhi (Chartered Accountant) (86323 Points)
Replied 17 June 2017

Pleasure is all us.....

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rama krishnan (12239 Points)
Replied 17 June 2017

if your father is 80 years at any time during the previous year then you can claim medical expenses to an extent of rs. 30000 and there should not be any medical insurance in the name of the father

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