Medical Allowance

Any Fixed Medical Allowances given is taxable in the hands of employees. If you gave under name of reimbursement then it can be considered as deduction while computing the income tax, OTHERWISE YOU SHOULD IT THIS TO INCOME.

I AGREE WITH SRI CHETAN SONI

R.V.RAO

medical allowance is fully taxable in the hands of employee irrespective of expenditure incurred. but the reimbursement shall be exempt upto Rs.15,000 and above this amount shall be taxable in the hands of employee.

If employee submiiting medical bills(claiming reiumbursement) then this amount should be deducted from his Taxable income (Yearly Gross salary ) otherwise the amount is fully taxable.

my Q is i am getting medical allowances in my salary per month, is it taxable or not ?

pls reply

Yes, fixed medical allowance is taxable

Please send me details of Salary taxable calculation

The amount of Rs. 15000 should not form part of monthly salary. Reimburse medical expenses to the extent of Rs. 15000. on submission of bills. Then it will not be taxable.

If medical allowances are paid by the employer as the part of the Salary Structure then such allowances should be taxable in the hands of the employee.....whereas if they are not the part of the salary then we can say that employer is reimbursing the amount and then Rs. 15000 deduction can be allowed

Definately medical allowance in the hands of your employees taxable but at the time of filling their return of income tax they can cliams the same up to Rs.15000/-.It is nothing but deduction after submission of bills to you (ie Employer ) . Hence you can make deduction in your pay slip while calculating tax for TDS nothing else.

Thanking You

Rakesh