Dear seniors and Experts,
Request you all kindly let me know in detail about the exemption of Medical Expenditure which is an amount of Rs.15000/- P.A.
As you all know that most of the companies set up Rs. 1250/- P.M as Reimbursement as Medical expenses in salary structure to given an IT exemption. Here, I would know the small clarification. if an employee leaves the organization in mid of the year and as per salary structure he/ her Rs.7500/- entitle as an exemption (if works only six months), can we consider Rs. 15000/- as an exemption in the context of Rs. 15000/- is an exemption if the amount reimbursed by the employer. I could not find that we can give only Rs. 1250/- is exempted P.M towards reimbursement of Medical expenses likewise Rs. 800/- exempted towards Transport allowance. I understand that an amount of Rs. 15000/- per Annam can be given an exemption if the amount reimbursed by employer upon submission of bills not on monthly basis. May be the flexibly for designing of salary structure Rs. 1250/- would be shown P.M to arrive month gross.
In view of the above, I request you all kindly help me out in this regard and correct me if I am wrong for better understating.You kind support for the same would be greatly appreciated.
Thanks in advance,
Kumar
Yo
CAclubindia
