allowances

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deepak (Querist)
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04 March 2010 hi all,
if i get medical reimbursement from my company but i donot give any bill of my reimbursement. so will it be a part of allowances or reimbursement. if it will be an allowances so what is the limit of exemption.

rgds

deepak

Rasesh

Rasesh (Expert)
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04 March 2010 I am responding to the query differently.

The responsiblity to prove or show medical bills arises only at the time of assessment. The Company can give the amount as tax free to the extent of Rs. 15,000 p.a. This is the practice followed by most companies.

Rahul Gupta

Rahul Gupta (Expert)
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05 March 2010 My view is if no bills are submitted to the company then the amount will not be exempted and the amount paid by co. will be treated as allowance and will be included in the income while calculating the TDS on Salary as per the slab rates.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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05 March 2010 Agree with Mr.Rahul

Kishanlal Paliwal

Kishanlal Paliwal (Expert)
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06 March 2010 The term "Riembursment" and "Allowance" are different.

The Allowance is taxable.

The Riembursment is exempted upto Rs.15000/- for such exemption one should have supporting documents evedencing medical expenses. The employer may treat the payment tax free upto a cieling of Rs.15000/- per year. The burden of proof always lies upon the employees and to be submitted at the assessment on demand.

Regards
K.L.Paliwal

Rasesh

Rasesh (Expert)
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08 March 2010 Agree with Mr. Kishanlal

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