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Relating taxable salary

Naval sunal (student) (56 Points)

02 February 2016

X an private employee gets medical allowance of 300 p.m. amount spent on medicines 4500 during the year.

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10 Replies

Udgam Koomar (Tax Technologist) (1949 Points)
Replied 02 February 2016

The limit for theallowance is Rs. 15,000. The limit for reimbursements is Rs. 15,000

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Vikas Gupta (Tax Executive) (530 Points)
Replied 02 February 2016

Medical Allowance is fully taxable. However, medical facility (in some cases), if any provided by the employer is exempted upto Rs. 15000 agst bills produced by employee.

CMA Poornima Madhava (CMA) (13112 Points)
Replied 02 February 2016

I agree with Vikas

PREETI GAUTAM (Article in ca firm) (23 Points)
Replied 02 February 2016

I have a doubt regarding the meaning of "in arrears" as per section 89(1) of the Income Tax act 1961?

Naval sunal (student) (56 Points)
Replied 02 February 2016

Thanks 2 all above judicious peoples

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Ramanuj (Accountant.) (834 Points)
Replied 02 February 2016

agree with above

Rajesh Kumar Gupta (Senior Divisional Manager) (714 Points)
Replied 02 February 2016

What is the doubt u/s 89(1)

CA PRAVEEN PACHALAG (CA ) (208 Points)
Replied 03 February 2016

Better claim 5000 for preventive health chek up in cash u/s 80D

CA PRAVEEN PACHALAG (CA ) (208 Points)
Replied 03 February 2016

Better claim 5000 for preventive health chek up in cash u/s 80D

Vikas Gupta (Tax Executive) (530 Points)
Replied 03 February 2016

Any sum(s) received in arrear will be taxed in the year of receipt if the same has not taxed earlier. For claiming tax rebate u/s 89(1), tax is first computed on total income including such arrears and then tax is computed on total income excluding such arrears. The difference, if any in positive may be claimed u/s 89(1).

Pls read the section 89(1) throughly for this purpose.