banner_ad

Medical Allowance

This query is : Resolved 
Profile Image

Profile Image

(Querist)
17 November 2008 My Company is paying Rs.1,250/- every month to all employees in their pay slip. This amount has been treated as exempted while calculating tax liability. Without taking any proof/s for amount spent on medical expenses, my Company is taking declaration from employee that the amount received by the employee has been spent for the purpose for which it has been given. Will it be correct on the part of Income Tax Act/Law? What will be the end responsibility of Employee as well as Employer?
Profile Image

Deepak Agrawal

Profile Image

Deepak Agrawal (Expert)
17 November 2008 Since its fixed, it is allowance. So taxable in hands of employees.

but if it is under medical bills re-imbursement, company will have to take bills from employees
Profile Image

Ravikumar.G

Profile Image

Ravikumar.G (Expert)
17 November 2008 Further,
Liable for FBT :
Expenditure actually incurred by the employee for medical treatment in an unapproved hospital upto Rs.15,000/- during the year.
Profile Image

Ravikumar.G

Profile Image

Ravikumar.G (Expert)
17 November 2008 Not Liable for FBT :
Expenditure exceeding Rs.15,000/- during the year, actually incurred by the employee for medical treatment in an unapproved hospital.
Profile Image

Ravi S.

Profile Image

Ravi S. (Expert)
17 November 2008 I believe it is to be treated in the hands of employee
Profile Image

O.D.SHARMA

Profile Image

O.D.SHARMA (Expert)
18 November 2008 This 1250/- PM amount is Medical allowance & on submission of bills is tax free,
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
29 May 2026
Accounts assistant

Shubh Consultancy

Mumbai

Graduate (Any)

View Details
Company
26 May 2026
Senior Accountant cum purchase Manager

Vardhaman Group of India

Pimpri Chinchwad

CA Inter

View Details
Company
18 May 2026
MIS Executive

Primarc Pecan Retail Limited

Mumbai

B.Com

View Details
Company
19 May 2026
Article, CA & Paid Assistant Positions

Aggarwal Sarawagi and Co

New Delhi

CA

View Details
Company
29 May 2026
Company Secretary - Part time

Shaswat initial support private limited

Ahmedabad

CS

View Details
Company
12 May 2026
Accounts Executive

Nafa Group

Mumbai

B.Com

View Details
Company
23 May 2026
Article Assistant

Geeta Manchanda & CO.

New Delhi

CA Inter

View Details
Company
04 June 2026
Semi Qualified CA

Goyal Puneet & Associates

New Delhi

CA Final

View Details