Hi Raj,
As per my knowledge, we should keep the Conveyance allowance fixed at 800 pm and the Medical allowance at 1250 pm, as 15K is exempted from tax annually for the medical reimbursement part. I believe the Education allowance is fixed up to 200 pm.
Regards,
Lakshmi
From India, Mumbai
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1As per my knowledge, we should keep the Conveyance allowance fixed at 800 pm and the Medical allowance at 1250 pm, as 15K is exempted from tax annually for the medical reimbursement part. I believe the Education allowance is fixed up to 200 pm.
Regards,
Lakshmi
From India, Mumbai
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Hi Raj/Lakshmi,
Lakshmi, you are right, except for education allowance. Conveyance allowance is exempted from tax up to Rs. 800 per month subject to actual spending on official purposes. Education Allowance is exempt up to Rs. 100 per month per child, up to a maximum of 2 children. Medical allowance is exempted up to Rs. 15,000 per annum subject to actual expenditure.
I have a query: there is a difference between medical reimbursement and medical allowance. I went through posts on citeHR but didn't quite understand. SENIORS, can you shed some light on this?
Regards,
Satarupa
From India, Gurgaon
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Lakshmi, you are right, except for education allowance. Conveyance allowance is exempted from tax up to Rs. 800 per month subject to actual spending on official purposes. Education Allowance is exempt up to Rs. 100 per month per child, up to a maximum of 2 children. Medical allowance is exempted up to Rs. 15,000 per annum subject to actual expenditure.
I have a query: there is a difference between medical reimbursement and medical allowance. I went through posts on citeHR but didn't quite understand. SENIORS, can you shed some light on this?
Regards,
Satarupa
From India, Gurgaon
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Dear Laxmi,
Thank you for your good suggestion. I am aware of the norms regarding income tax exemption, but my question is if there are any restrictions on the amount. For example, if we allocate more amount across all heads like Conveyance allowance is Rs. 1200/-, with Rs. 400/- being taxable income, are we allowed to create this type of salary structure?
Regards,
RAJ PANDEY
From India, Nagpur
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Thank you for your good suggestion. I am aware of the norms regarding income tax exemption, but my question is if there are any restrictions on the amount. For example, if we allocate more amount across all heads like Conveyance allowance is Rs. 1200/-, with Rs. 400/- being taxable income, are we allowed to create this type of salary structure?
Regards,
RAJ PANDEY
From India, Nagpur
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Dear Lakshmi,
Regarding the Meal Voucher, there is a limit as prescribed by the IT Act. Please involve the Finance accountant in your final decision; otherwise, your company may face issues with the IT authorities.
Regards,
Ukmitra
From Saudi Arabia, Riyadh
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Regarding the Meal Voucher, there is a limit as prescribed by the IT Act. Please involve the Finance accountant in your final decision; otherwise, your company may face issues with the IT authorities.
Regards,
Ukmitra
From Saudi Arabia, Riyadh
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