09 May 2012
i) Medical allowance forms part of salary as per section 17(1), accordingly entire amount paid is taxable and should be shown in clause 1(a) of part B of form 16. ii) If it is a reimbursement in respect of expenditure actually incurred for medical treatment, such payment is covered under proviso (v) of section 17(2)(viii), accordingly should be routed through clause 17 of form 12BA read along with clause 1(b) of part B of form 16.
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