Relating taxable salary

X an private employee gets medical allowance of 300 p.m. amount spent on medicines 4500 during the year.
Replies (10)

The limit for theallowance is Rs. 15,000. The limit for reimbursements is Rs. 15,000

Medical Allowance is fully taxable. However, medical facility (in some cases), if any provided by the employer is exempted upto Rs. 15000 agst bills produced by employee.

I agree with Vikas

I have a doubt regarding the meaning of "in arrears" as per section 89(1) of the Income Tax act 1961?

 

Thanks 2 all above judicious peoples

agree with above

 

What is the doubt u/s 89(1)
Better claim 5000 for preventive health chek up in cash u/s 80D
Better claim 5000 for preventive health chek up in cash u/s 80D

Any sum(s) received in arrear will be taxed in the year of receipt if the same has not taxed earlier. For claiming tax rebate u/s 89(1), tax is first computed on total income including such arrears and then tax is computed on total income excluding such arrears. The difference, if any in positive may be claimed u/s 89(1).

Pls read the section 89(1) throughly for this purpose.

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