Medical Allowance

You can pay fixed medical on monthly basis. You can show Rs 15000 as deduction while computing taxable income only if  employees have submitted medical bills upto Rs 15000/- p.a. only. Balance medical allownace will be taxable in the hand of employees.

All the Fixed Allowances are taxable in the hands of the employees.

And Regarding the Medical Allowance,

Reiumbersment by the employer of amounts spent by the employee in obtaining medical treatment for himself or any member of the family from any doctor, not exceeding in agreegate Rs.15000 in a year is not a perquisite.

If any amount is not towards reiumbersment of amount spent the amount is taxable in the hands of the employee.

While giving the Medical allowance on a monthly basis as Reimbursement of Medical allowances, the employer should get a declaration from the employees that they have incurred the expenditure and to make a claim on the employer to avoid any further queries by the Department on DDO

I am getting the medical allowance of Rs1250 pm totalling to Rs15,000 pa from my employer. Whether every month I should submit the bills in support of expenses or will  it be ok if I submit the bill for Rs15,000 before the end of the Financial year say, 1st week of March'09 for getting the benefit of total deduction of Rs15,000.

You can submit the bills at any time with in the financial year to get the said benefit. Generally in companies reimburses as and when submit the bills.

Dear Sir,

Reimbursment medical expenses(rs,1250 p.m) and telephone expenses (Rs.1000p.m.) are part of salary. The company reimburses these in every month without receiving any documents from the employees and the company is deducting tax from salary by treating these expenses non taxble in the hand of employee. My questios are as follows:

1. Monthly reimbursment without submission of documents by the employees, is it taxble in the hand of employee in same month for calculationof TDS? If the employee submits the documents at the end of the year say 1st week of March for the  amount Rs 15,000 for medical reimbursment and Rs. 12,000 for telephone expenses will it be tax free in the hand of the employee for the whole amount?

You are requested  to reply breifly.

Thanks & Regards

Saroj

Dear bala

The medical allowances is fully taxable in the hands of Employees. Employee can reimburse medical Perquisites up to Rs.15000

Fixed Medical Allowance is fully taxable

Medical allowance is the expenses actually re-imbursed by the employer to the employee.

Hence it is not the adhoc allowance, It is the actual expenditure but such expenditure cannot allowable beyond Rs.15000 per annuam.

With regards

George Victor

Medical allowance upto  Rs.15000  taxble under FBT in the hands of employer?

Hi,

You can pay fixed medical on monthly basis.

All the Fixed Allowances are taxable in the hands of the employees.

If any amount is not towards reiumbersment of amount spent the amount is taxable in the hands of the employee.

Thanks.