Medical Allowance

This query is : Resolved

Ashwini Kumar (Querist)
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20 April 2009 Respected Seniors,

If an employee is getting fixed amount as medical allowance, can he avail exemption u/s 17(2) upto Rs. 15000/-? Please comment.

CA.Pujah

CA.Pujah (Expert)
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20 April 2009 Allowance is different from reimbursement.
If you get medical allowance. it will be fully taxable.
but if you get medical reimbursement, it will be tax free upto Rs.15000/-, because that's when it will be perquisite.
this limit of 15000 will exclude the reimb for govt hospitals/ CIT approved hospitals or hospitals run by employer.