Medical Allowance

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This query is : Resolved

Prashant (Querist)

29 March 2010 Hi..

I would like to know in our company the salary package is breaked up in 4 parts

Basic
H.R.A.
Conveyance Allowance
Education Allowance

To save tax if i exchange any of above 2 allowance with 'Medical Allowance'Will be considered for tax benefit ? If yes how and what would be the supporting documents required to claim the same

e.g. Rs.5000/- is Medical Allowance (p.m.)
Annual cost would be Rs.60000/- Is it medical treatments, doctors fees, medicine cost can be claimed under this head by taking supporting documents

Please revert asap

Thanks,
Prashant

CA. Pradeep Nayak

CA. Pradeep Nayak (Expert)

29 March 2010 For Income tax purpose, Medical Reimbursement upto Rs. 15,000/- can be claimed by submission of actual bills. The employer will have to consider this amount while determining the amount of TDS on salary.

Any amount in excess of Rs. 15,000/- will be fully taxable even though it is reimbursed by the employer on the basis of actual bills.

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