hi all, pls tell me the percentage of tax levied on medical reimbursement, we have rs. 1250 claim for all our employees. Poonam
From India, Delhi
From India, Delhi
Dear Poonam, Till Rs 1250 Medical Allowance is non taxable.Please check If you have Allowance or Reimbursement. Regards. Monku
From India, Delhi
1From India, Delhi
Hi Monku,
thanks , it is a medical reimbursement, but i am unaware of the medical allowance, in whcih all cases medical allowance can be given???
i thought it is only reimbursment through which this amount is being paid to the employees, please explain it to me.
Thanks
Poonam
From India, Delhi
thanks , it is a medical reimbursement, but i am unaware of the medical allowance, in whcih all cases medical allowance can be given???
i thought it is only reimbursment through which this amount is being paid to the employees, please explain it to me.
Thanks
Poonam
From India, Delhi
Hi Poonam
Medical reimbursement is when you are given the amount only when you produce medical bills upto the amount of Rs 1250 per month...this may be reimbursed on a monthly/quaterly/half yearly basis.
Medical allowance is just another component of your salary wherein you get the said amount irrespective of whether you produce the bills or not and this component is taxable unlike the medical reimbursement which is non taxable if claimed through bills.
Hope this clears all doubts you have
Gargi
From India, Hyderabad
Medical reimbursement is when you are given the amount only when you produce medical bills upto the amount of Rs 1250 per month...this may be reimbursed on a monthly/quaterly/half yearly basis.
Medical allowance is just another component of your salary wherein you get the said amount irrespective of whether you produce the bills or not and this component is taxable unlike the medical reimbursement which is non taxable if claimed through bills.
Hope this clears all doubts you have
Gargi
From India, Hyderabad
Thanks Gargi,
It has cetainly cleared my doubt. The amount that we give is a part of salary component, and we pay this once in a year, it is taxable and if employee produces the bill, we pay it to him.
i also wanted to know the percentage of tax levied on it.
Cheers
Poonam
From India, Delhi
It has cetainly cleared my doubt. The amount that we give is a part of salary component, and we pay this once in a year, it is taxable and if employee produces the bill, we pay it to him.
i also wanted to know the percentage of tax levied on it.
Cheers
Poonam
From India, Delhi
Hi Poonam,
This is for your information that Medical Allowance if anybody is getting is taxable whereas Medical Reimbursement if Tax Free but that too with the limit, I think Rs.15,000/- is the limit over which Medical Reimbursement is also becomes Taxable.
After the limit of Rs.15,000/- whatever reimbursement he will get is added to the salary.
Regards
RK Sinha
From India, Ludhiana
This is for your information that Medical Allowance if anybody is getting is taxable whereas Medical Reimbursement if Tax Free but that too with the limit, I think Rs.15,000/- is the limit over which Medical Reimbursement is also becomes Taxable.
After the limit of Rs.15,000/- whatever reimbursement he will get is added to the salary.
Regards
RK Sinha
From India, Ludhiana
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Circular No 1-2018 Processing of income-tax returns under section 143(1) of the Income-tax Act .pdf
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