balakmu (22 Points)
24 April 2008Hi
We want to Pay a fixed monthly Medical Allowances instead of Medical Reimbursement to our employee (the same is taxable on the hand of employees)
My Question is at the time computing the Employees Income Tax whether This Medical Allowance upto Rs. 15,000/- can be shown as Deduction from the Taxable Income.
If yes, what will be the consequences for employees?
Raghava Ravi Kiran V
(84 Points)
Replied 24 April 2008
All the Fixed Allowances are taxable in the hands of the employees.
And Regarding the Medical Allowance,
Reiumbersment by the employer of amounts spent by the employee in obtaining medical treatment for himself or any member of the family from any doctor, not exceeding in agreegate Rs.15000 in a year is not a perquisite.
If any amount is not towards reiumbersment of amount spent the amount is taxable in the hands of the employee.
Muralidharan
(Chartrered Accountants)
(115 Points)
Replied 25 April 2008
While giving the Medical allowance on a monthly basis as Reimbursement of Medical allowances, the employer should get a declaration from the employees that they have incurred the expenditure and to make a claim on the employer to avoid any further queries by the Department on DDO
I am getting the medical allowance of Rs1250 pm totalling to Rs15,000 pa from my employer. Whether every month I should submit the bills in support of expenses or will it be ok if I submit the bill for Rs15,000 before the end of the Financial year say, 1st week of March'09 for getting the benefit of total deduction of Rs15,000.
Nagaraju Pogula
(Partner)
(175 Points)
Replied 25 April 2008
You can submit the bills at any time with in the financial year to get the said benefit. Generally in companies reimburses as and when submit the bills.
Dear Sir,
Reimbursment medical expenses(rs,1250 p.m) and telephone expenses (Rs.1000p.m.) are part of salary. The company reimburses these in every month without receiving any documents from the employees and the company is deducting tax from salary by treating these expenses non taxble in the hand of employee. My questios are as follows:
1. Monthly reimbursment without submission of documents by the employees, is it taxble in the hand of employee in same month for calculationof TDS? If the employee submits the documents at the end of the year say 1st week of March for the amount Rs 15,000 for medical reimbursment and Rs. 12,000 for telephone expenses will it be tax free in the hand of the employee for the whole amount?
You are requested to reply breifly.
Thanks & Regards
Saroj
Gayathri Devi
(CA Final)
(882 Points)
Replied 28 April 2008
Dear bala
The medical allowances is fully taxable in the hands of Employees. Employee can reimburse medical Perquisites up to Rs.15000
CA RAMESH KUMAR AHUJA
(CA, DISA, LLB)
(5452 Points)
Replied 07 October 2008
Fixed Medical Allowance is fully taxable
George
(Professional )
(20 Points)
Replied 15 October 2008
Medical allowance is the expenses actually re-imbursed by the employer to the employee.
Hence it is not the adhoc allowance, It is the actual expenditure but such expenditure cannot allowable beyond Rs.15000 per annuam.
With regards
George Victor
Gowtham
(auditor)
(31 Points)
Replied 13 April 2009
Medical allowance upto Rs.15000 taxble under FBT in the hands of employer?
Pam
(Student)
(26 Points)
Replied 14 April 2009
Hi,
You can pay fixed medical on monthly basis.
All the Fixed Allowances are taxable in the hands of the employees.
If any amount is not towards reiumbersment of amount spent the amount is taxable in the hands of the employee.
Thanks.
CAclubindia
