Medical Allowance
This query is : Resolved
Guest
Guest
(Querist)
17 February 2009
Dear Sir
My CTC includes Rs.1046 monthly Medical Allowance. I have incurred medical expenses of Rs.2170 during the period April 2008 to Jan 2009, certificate of all medical expenses are available.
According to my company they cannot give me the deduction as they have not paid my
medical expense.
In my opinion I can claim the deduction of medical expenses incurred by me against my total salary income as my CTC includes Medical Allowances.
If I can claim the deduction please provide me the section of Income tax Act which clarify this issue and if i am wrong plz guide me.
My CTC includes Rs.1046 monthly Medical Allowance. I have incurred medical expenses of Rs.2170 during the period April 2008 to Jan 2009, certificate of all medical expenses are available.
According to my company they cannot give me the deduction as they have not paid my
medical expense.
In my opinion I can claim the deduction of medical expenses incurred by me against my total salary income as my CTC includes Medical Allowances.
If I can claim the deduction please provide me the section of Income tax Act which clarify this issue and if i am wrong plz guide me.
Ramakrishna
(Expert)
17 February 2009
Hi Vishal,
As per section 17(2)(iii) of Income tax Act any medical reimbursement by employer of amounts spent by the employee in obtaining medical treatment for himself or any member of his family not exceeding in agreegate, Rs. 15000 in a year will not be treated as perquisite. This is an indirect way of exemption though it is not part of Section 10 category. Any amount exceeding the above will be taxable (treating it as perquisite) only in the hands of specified employees.
It is the usual practice of corporates to offer medical allowance (reimbursement)as part of CTC and then allowing the employees to submit bills so that employees can get exempted from the tax.
As per section 17(2)(iii) of Income tax Act any medical reimbursement by employer of amounts spent by the employee in obtaining medical treatment for himself or any member of his family not exceeding in agreegate, Rs. 15000 in a year will not be treated as perquisite. This is an indirect way of exemption though it is not part of Section 10 category. Any amount exceeding the above will be taxable (treating it as perquisite) only in the hands of specified employees.
It is the usual practice of corporates to offer medical allowance (reimbursement)as part of CTC and then allowing the employees to submit bills so that employees can get exempted from the tax.
Ramakrishna
(Expert)
17 February 2009
Hi Vishal,
As per section 17(2)(iii) of Income tax Act any medical reimbursement by employer of amounts spent by the employee in obtaining medical treatment for himself or any member of his family not exceeding in agreegate, Rs. 15000 in a year will not be treated as perquisite. This is an indirect way of exemption though it is not part of Section 10 category. Any amount exceeding the above will be taxable (treating it as perquisite) only in the hands of specified employees.
It is the usual practice of corporates to offer medical allowance (reimbursement)as part of CTC and then allowing the employees to submit bills so that employees can get exempted from the tax.
As per section 17(2)(iii) of Income tax Act any medical reimbursement by employer of amounts spent by the employee in obtaining medical treatment for himself or any member of his family not exceeding in agreegate, Rs. 15000 in a year will not be treated as perquisite. This is an indirect way of exemption though it is not part of Section 10 category. Any amount exceeding the above will be taxable (treating it as perquisite) only in the hands of specified employees.
It is the usual practice of corporates to offer medical allowance (reimbursement)as part of CTC and then allowing the employees to submit bills so that employees can get exempted from the tax.
CA Nitin Wadhwani
(Expert)
18 February 2009
Amt is 1046 is a fixed medical allowance which is fully taxable.
The amt of 2170/- if reimbursed by the company will not be taxable.
The amt of 2170/- if reimbursed by the company will not be taxable.
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