Tax treatment on Medical allowance

Dear Suresh,

Prima facie it looks like a fixed allowance, which is fully taxable.

But the question whether it will be taxable or can be claimed exempt on submission of bills, depends upon ur Employer.

If ur employer considers it as Allowance then it will be TAXABLE.

If ur employer considers it as a perk, then it can be claimed exempt on submission of bills... Bills can be produced at year end...

Hi Amir,

Thanks for your reply. But still I have got one more doubt.. In the answer you have mentioned that it all depends upon the way how employer treats it. So Is it possible to consider it as Medical reimbursement even after showing it as Medical allowance in my payslip??

According to me medical allowance should not be treated as medical reimbursment. If there is any reimbursment then company should have bills for it and also pay it with seprate cheque.

But in practical life company do mix up medical reimbursment and medical allowance. They provide exemption upto Rs. 15,000 for medical allowance but you should leave it to the management as its their responsibility and decision.

dear suresh

if in ur payslip it is specifically mention then it shall be treated as a allowance and it is fully taxable.

regards

tarun rustagi

Agreed with above members.

It will be taxable as you are getting allowance not reimb.

medical allowance is fully taxable