TaxTMI 
TaxTMI 
I joined an organization in June 2014. Medical Allowance in the amount of ₹ 15,000/- is tax exempted annually. Is this applicable to me too OR I get a tax exemption only for ₹ 12,500/- only i.e. 10 months of employment in FY 2014 - 2015 (June 2014 to March 2015). Please advise.
Tax Exemption - Medical Allowance for Salaried Personnel
18 Feb 2015 
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Medical allowance exemption prorated to period of employment; annual exempt limit apportioned based on months worked.
The adviser concludes that the annual medical allowance exemption must be apportioned to the period of employment within the financial year; consequently only the prorated portion corresponding to months worked is allowable. (AI Summary)
The adviser concludes that the annual medical allowance exemption must be apportioned to the period of employment within the financial year; consequently only the prorated portion corresponding to months worked is allowable. (AI Summary)