Medical allow & lta exemption

Dear Sir

MEDICAL ALLOWANCE:

Medical Allowance is fully taxable irrespective of the amount paid or whether the employee spends it for his medical expenses or not.

But the employee can avail the benifit of Medical Reimbursement. THe difference between them is that Medical allowance is a fixed allowance paid every month irrespective of need & Medical Reimbursement is paid as and when needed to employees on producing medical bills.

Benifit is available upto Rs. 15,000 p.a for medical facilities availed by the Employee in private Hospital.

In Govt Hospitals, hospitals maintanied by employer & Hospitals approved by Chief Commisioner there is no monetary ceiling.

LEAVE TRAVEL:

Leave travel concession/Allowance is extended by an employer to an employee for going anywhere in India along with his family is exempt to the extent mentioned below:

Where the Journey is performed by Air: Amount of Economy class air fare of the national carrier by the shortest route OR the amount spent, whichever is less.

Where the journey is performed by rail: Amount of air conditioned first class rail fare by the shortest route or the amount spent, whichever is less

Where the places of origin of journey and destination are connected by rail and journey is performed by any other mode of transport: Amount of air conditioned first class rail fare by the shortest route or the amount spent whichever is less

ONLY 2 JOURNEYS IN A BLOCK OF 4 YEARS I EXEMPT. THE PRESENT BLOCK STARTS FROM 1 JAN 2010 TO 31 DEC 2013

Regards,