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Advise on deductions/exemptions from salary AY 2012-13 esp medical reimbursement issue

3466 views 1 replies

Sanjit

not applicable

140 Points Posted on 27 February 2012

Apart from my Basic this is the breakuop of my monthly salary

I would like to know what and to what extent do any of these qualify for deductions/exemtions from Gross Salary and if so subject to what conditions - all with respect to AY 2012-13

House Rent Allowance 3,750.00

Medical Re-imbursement 1,250.00

Special allowance 10,800.00

Transport Allowance 800

DECUSTIONS

Prof Tax - 200.00

EPF Contribution - 900

I believe that Transport allowance is exempt upto 800 pm

I believe HRA does qualify for deductions subject to certaion consitions - thise conditions are unknown and not understood by me

Special Allowance I do not think will qualify at all

Medical Reinbursement does qualify upto Rs 15000 per annum but what are the conditions? Does one have to claim against actual bills produced for re-imbursement or is it a notional amount?

EPF and Professional tax i know does qualify for deduction with the former under Chapter VI

Thanks for any help on this issue

Replies (1)

CA SUMANTH

LEARNER.....

294 Points Posted on 27 February 2012

proffessional tax will be deducted from taxable salary u/s 16, for EPF contribusions u will get deduction u/s 80C(limit 1 lakh), trasport allowance exempt 800 pm.

Rule for HRA exemption is least of following,

1. Actual HRA

2 Rent paid above 10% of basic salary

3 50% of basic(metropolitan cities) other city 40%

Regarding medical reimbursement, exemptible on submition of bill(15000 p a is the limit). If its paid monthly, exemption is limited only to bills submited in that month.