07 April 2009
Dear Frinds would any body please clarify whether an employee can get the benefit of medical allowance and mediclaim deduction from income tax. In case of our company, it is paying Rs. 15,000/- as a medical allowance i.e. part of CTC. Now the employee himself paid a mediclaim for Rs. 11000/-. Now he is asking me tax benefit for both, Rs. 15000/- i.e. medical allownace as exempted salary and Rs.11,000/- as mediclaim deduction. is it possible ?
07 April 2009
An employee can claim both deduction as both dealt in different sections of IT Act,
he can claim max Rs.15000/- towards medical expenses incurred subject to production of bills. under section 10 only if he is in receipt of medical allowance.
further, he can also claim deduction under section 80D on mediclaim premium paid by him.
CAclubindia
