Hi!
Suppose the employer is paying Rs. 500/- p.m as a Medical allowance to employee. Pls let me know for this Medical allowance amount will be consider for exemption from taxable income only if the employee provides the medical bills .
Thanks in Advance.
Regards,
Valli
Ya if the Medical allowance is paid in the part of salary every month is taxable in the hands of employee , because the above medical allowance is not paid in lumpsum i,e is on providing of bills , All fixed alloawance are taxble
Thank you
Hi,
I have two questions :
1. If my father is a senior citizen, can I avail more exemption on medical insurance?
2. What is meant cashless transaction?
Thanks in Advance.
Medical Allowance received is taxable, bills paid are not deuctible
HI VALLI,
MEDICAL ALLOWANCE IS ALWAYS TAXABLE. BUT REIMBURSEMENT OF MEDICAL EXPENDITURE UPTO RS.15000 IS EXEMPT. THUS, IF CO. IS GIVING FIXED MONTHLY ALLOWANCES THEN IT WOULD ALWAYS BE TAXABLE AND NO EXEMPTION COULD BE CLAIMED THEREFROM.
REGARDS,
MANOJ
Medical Allowance is taxable but by virtue of section 17 (2) medical reimbursement to employee upto Rs. 15000/- p.a. is expempted in the hand of employee. This is treated as Exemted Perquisites.
Thank you all for clarifications
CAclubindia
