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Medical Expenses Exemption

TDS / TCS 1126 views 3 replies

Rahul Kulkarni

Sales Manager

57 Points Posted on 30 July 2010

Dear all,

I have one query,

If the company is paying Rs. 5,000/- as Medical Allowance for the year to an Employee, and the Expenses incurred by him of Rs. 20,000/-, then how much exemption of Medical Expenses will get to him at the time of filling the Income Tax return, as the Medical Exemption limit is Rs. 15,000/-.

As he has the only income from salary, and no other income is gaining by him.

Plz, tell at the earliest. Most Urgent

Rahul

Sr. Accountant

Replies (3)

Harpreet

* * * * * *

1670 Points Posted on 30 July 2010

Only Rs. 5000/- as you have received only Rs. 5000/- not Rs.15000/- or Rs. 20000/-

You can claim only amount which company reimbursed you (employee)

harsh

tyjy

44 Points Posted on 30 July 2010

Rs. 5000 will be tax free rest will be taxable as a perquisite in the hands of the employee

RAJKUMAR DUREJA

Chartered Accountant

94 Points Posted on 08 September 2010

Medical allowance is not specified in the IT Act as an allowance which bears exemption. Fixed medical allowance is always chargeable to tax. Reimbursement of medical expenses is not taxable up to Rs 15000 per financial year.