As per my knowledge medical allowance of 1,250/- is given through salary every month & in the yearend we will submit medical bills to get the exemption.
But in my current employer they are stating that auditors have told that medical allowance exemption cannot be given & only if it is mentioned medical reimbursement then it can be given which is not correct pls let me know whether my stand is correct
16 July 2010
Medical allowance is not specified in the Income tax Act,1961 as an allowance which bears exemption. Hence it is fully taxable in the hands of the employee.
CAclubindia
