TDS on Employees Salary

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sreenath (Querist)

11 April 2010 One of our Employee is Having own house but he is residing in a rented house and his house is given for rent to others.

my question is the allowance of HRA is Applicable or not for the Above Employee
either it is fully taxable or not and he is paid for the rented house rs 8000 pm

the other employee is arguing he is having medical bill pertaining to his father medical treatment and our company is not given any medical allowance to him

my question is the medical expenses is reimbursed by employer then only it is a tax free or not

Please explain me Very Urgent

Thanks & Regards

Sreenatha Reddy

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

11 April 2010 If the employee residing rental house and producing the rent receipt you can allow the HRA exemption claim and if he wants show his house property income that also you can consider and based on that you can calculate the tax and deduct
for claiming Medical bills the employee has to get the medical reimbursment from the employer as his part of salary and if the employer providing as medical allowance that is fully taxable against that he cannot claim any medical bills

CA Prashant Gupta

CA Prashant Gupta (Expert)

11 April 2010 you can give HRA exemption if he is providing rent receipt.
if co is giving medical reimbursement then till 15000/- (fifteen thousand) it is tax free but medical allowance is fully taxable.

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