What is the difference between Medical Reimbursement and Medical Allowance wrt Salary components and Income tax calculation
From India, Delhi
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From India, Delhi
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Medical Allowance is a fully taxable salary component, whereas Medical Reimbursement is a perquisite that is exempt from tax, subject to a maximum of Rs. 15,000/- per financial year. Medical Reimbursement is an HR policy matter. However, the employee has to submit bills up to Rs. 15,000/- to avail of the tax exemption. Depending on the policy established by the HR department, it is acceptable. In other words, the company may implement a policy that requires the employee to submit the original bill of medicine. If a bill exceeds a value of Rs. 500/-, it should be accompanied by a doctor's prescription, etc. This policy framed by the company may likely be monitored by the Tax department.
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Sr. Manager (HR & Legal)
From India, Guwahati
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13Regards,
Sr. Manager (HR & Legal)
From India, Guwahati
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