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Medical allowance (Income Tax)

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This query is : Resolved



( Author )
12 February 2010

Hello All,

Medical allowance is exempted upto an extent of 15000/- but it is provided that only the rembursement is exempted.
so if an employee get Rs. 1500 p.m. towards medical allowance, the total goes to Rs. 18000/- and is he/she does not spent any amount on medical expences in the relevant year' then:
(A) is the total amount Rs. 18000/- taxable under the head salary, or
(B) is only Rs. 3000/- is taxable


CMA. Dinesh S Adhikari, ACMA

( Expert )
12 February 2010

Hello,

I want to clarify here that Medical Allowance is fully taxable whether any amount spent on medical treatment or not, whereas another side Medical reimbursement is exempt only upto Rs.15,000(However, if money reimburesed for govt. hospital or approved hospital by CIT or in employers own maintained hospital, then whole reimbursement amount will be exempt)

About your question, because you received MEDICAL ALLOWANCE which is fully taxable and not releted that you spent any amount or not, therefore whole amount, i.e., Rs. 18,000 will be TAXABLE in your hands.

Regards!!!


CA Prashant Gupta

( Expert )
12 February 2010

medical allowance is fully taxable.
in your case if you can provide medical bill to company on monthly basis for 1500/- or more then you can show it as medical reimbursement. But in your salary slip it should not be shown as medical allowance.
if you provide bill then you can claim medical reimbursement till 15000/- rese 3000 will be taxable.


CMA Ramesh Krishnan

( Expert )
12 February 2010

Medical allowance fully taxable there is no exemption

Medical reimbursement is exempted up to Rs.15000p.a based on the submission of bills


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