Rahul Kulkarni (Sales Manager) (57 Points)
30 July 2010Dear 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
Harpreet
(* * * * * *)
(1670 Points)
Replied 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)
Replied 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)
Replied 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.
CAclubindia
