Hi All,
I am in a process of making salary slip format and freezing the components of salary. Need your help to understand how to deal with medicals , if i would like to give maximum tax benefit of 15000/- per annum, can i show it as Medical advance in salary slip and if employee produces bills by the year end make it reimbursement. Or Medical Advance become taxable if we will show it in salary slip.
Please suggest.
Thanks
Ramandeep
From India, Delhi
I am in a process of making salary slip format and freezing the components of salary. Need your help to understand how to deal with medicals , if i would like to give maximum tax benefit of 15000/- per annum, can i show it as Medical advance in salary slip and if employee produces bills by the year end make it reimbursement. Or Medical Advance become taxable if we will show it in salary slip.
Please suggest.
Thanks
Ramandeep
From India, Delhi
Hi Ramandeep,
You can do as you have proposed. Medical advance will not be txable if shown in pay slip. If the bills are not submitted, then the advance becomes Medical Allowance, which is taxable. If bills are submitted, it becomes Medical reimbursement.
However, a better practice would be to not wait till the end of the year, but to ask for bills submission every 2-3 months or even half-yearly.
Warm regards,
Devjit
From India, Gurgaon
2You can do as you have proposed. Medical advance will not be txable if shown in pay slip. If the bills are not submitted, then the advance becomes Medical Allowance, which is taxable. If bills are submitted, it becomes Medical reimbursement.
However, a better practice would be to not wait till the end of the year, but to ask for bills submission every 2-3 months or even half-yearly.
Warm regards,
Devjit
From India, Gurgaon
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Medical Facts.pdf
Few Medical info.doc