Medical Allowance

[kishorsingh rajpoot]

Dear sir,

How many amount of tax free of medical allowance if my company paid mothly Medical Allowance of Rs. 1000/-.

Please give me breife detail of medical allowanaces.

Thanks and Regards

Kishor Singh Rajpoot

[CA Rachit Agarwal]

Maximum Medical Allowances exempted is Rs. 15,000 subject to expenditure incurred per financial year.

[malhar shenoy]

Medical reimbursement  is exempt and not medical allowance. Giving Rs 1000 p.m purely indicates it is in the nature of allowance, for reimburesement the same should be given only against producing the bills , this may be restricted to said amount.

 

AI Summary

Medical allowance exemption limited to amount subject to actual expenditure; reimbursement exempt when supported by bills.
Fixed employer payments without production of bills are characterized as medical allowance rather than medical reimbursement. Medical reimbursement is exempt when paid against actual medical bills; a respondent noted an annual exemption ceiling of Rs. 15,000 subject to expenditure actually incurred and substantiated.