query on Medical Allowance

NO , THE FIXED MEDICAL ALLOWANCE IS ALWAYS TAXABLE.

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