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Discussion > Income Tax > Tax queries >

Exemption of Medical Allowance

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Accountant


[ Scorecard : 40]
Posted On 19 May 2010 at 15:40 Report Abuse

My employer is paying fixed medical allowance every month  in my pay slip.   Still can I claim  a rebate of Rs.15,000/- per year towards reimbursement of medical expenses, even if submit medical bills to my employer to the extent of Rs.15,000/-.  Please Advise.

 

 

Regards,

S C Saluja


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Member (Account Deleted)


[ Scorecard : 256]
Posted On 19 May 2010 at 15:50

hai....

medical allowance and reimbursements are different

Medical allowance is FULLY taxable

Medical Reimbursement is exempt upto Rs 15000

These are parallel provisions and not mutually exclusive....



Total thanks : 1 times




Neha
Article


[ Scorecard : 113]
Posted On 19 May 2010 at 15:53

dear saluja ji....

fixed medical allowance is alwayz fully taxable..

there's no exemption available against it...

so , in ur case i think no exemption is available... if i get to know anything else about it..., i vl definitely tell u....

 

Regards..

Neha



Total thanks : 1 times



DT Fundas - Tarun rustagi
Author


[ Scorecard : 1105]
Posted On 19 May 2010 at 16:25

agree with the above friends.allowances other than hra and some specified allowances are always fully taxable.




DT Fundas - Tarun rustagi
Author


[ Scorecard : 1105]
Posted On 19 May 2010 at 16:28

allowance other than hra and under section 10(14) are always fully taxable.

regards

tarun rustagi




C.Balaji
Learner


[ Scorecard : 1857]
Posted On 19 May 2010 at 20:46

Agree with above friends........

Medical Allowance is fully taxable......

Medical reimbursement for treatment taken in a pvt. hospital is exempt upto Rs.15000/-.

Incase of Govt. hospital and some other hosp. it is fully exempt.....




CA Punit GoSwaMi
Article/Audit Assistant


[ Scorecard : 274]
Posted On 19 May 2010 at 23:50

Fixed medical allowance is alwz taxable..




Ankit rastogi
c.a student


[ Scorecard : 103]
Posted On 20 May 2010 at 14:06

I agree with above friends.but if you have taken a medical policy in this case exemption is allowed to the extent of 15000 as per sec 80D.but medical allowances are fully taxable. 




Sudev Namboothiri
CA FINAL


[ Scorecard : 429]
Posted On 20 May 2010 at 14:36

Agree with C.Balaji..




Shudhanshu Agrawal
CA Final and CS Final


[ Scorecard : 2438]
Posted On 20 May 2010 at 14:54

i am agree with all my friends as this is in the books.

 

Here i want to talk something practically. When FBT was introdced with Finance Act, 2005 many companies started doing tax planning for their employees. In that they use to provide reimbursement to save employees from tax burden, medical reimbursement became the part of this tax planning.

 

In this they use to give fixed amount of Rs. 1250 pm as part of salary and deducte FBT paid by them. Here also i think the case is similar. They are giving Rs. 15000 in 12 monthly installments. According to me this is correct, if employee furnish the medical bills.

 

I have not touched medical allowances as they are taxable

 

Do correct me if im wrong.



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