query on medical allowance

Dear Piyush,

Medical allowance is fully chargeable to tax in the hands of the employee.

However, medical facility (value of medical benefits) provided to an employee and his family by his employer is not treated as perquisite depending upon

1.Place of treatment (India or outside India)

2.Type of hospital in which treatment is taken

Reimbursement by employer of ampunt spent by the employee obtaining medical treatment for himself or any member of his family from any doctor not exceeding Rs. 15,000 in a year is not treated as perquisite.

There are many others also which are not treated as perquisite.Please read Rule 3A for details.

Hi Friend,

GENERALLY PAYMENTS BASED ON BILLS ARE KNOWN AS REIMBURSEMENT i:e PERQUISITES AND NOT ALLOWANCES..

REIMBURSEMENTS OF MEDICAL EXPENSES UPTO RS. 15,000 IN A FINANCIAL YEAR IS EXEMPT IN THE HANDS ON EMPLOYEES..ANY AMOUNT REIMBURSED IN EXCESS OF RS/ 15,000 WILL BE TAXABLE AS PERQUISITES UNDER THE HEAD SALARY..