Hi Raj,
As per my knowledge, we should keep Conveyance allowance fixed - 800 pm and Medical allowance as 1250pm as 15K is exempted from tax annually for medical reimbursement part. Education allowance i believe is fixed up to 200pm.
Rgds
Lakshmi
From India, Mumbai
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1As per my knowledge, we should keep Conveyance allowance fixed - 800 pm and Medical allowance as 1250pm as 15K is exempted from tax annually for medical reimbursement part. Education allowance i believe is fixed up to 200pm.
Rgds
Lakshmi
From India, Mumbai
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Hi Raj/Lakshmi,
Lakshmi u are right, except education allowance.
Conveyance allowance is exempted from tax upto Rs. 800 pm subject to actual spending on official purposes.
Education Allowance is exempt upto Rs. 100 pm per child upto max of 2 children.
medical allowance is exempted upto Rs. 15000 per ANNUM subject to actual expenditure.
I have a query: there is a difference between medical reimbursement and medical allowance. I went through posts in citeHR but didn't quite understand. SENIORS can u put some light on this?
Regards,
Satarupa
From India, Gurgaon
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Lakshmi u are right, except education allowance.
Conveyance allowance is exempted from tax upto Rs. 800 pm subject to actual spending on official purposes.
Education Allowance is exempt upto Rs. 100 pm per child upto max of 2 children.
medical allowance is exempted upto Rs. 15000 per ANNUM subject to actual expenditure.
I have a query: there is a difference between medical reimbursement and medical allowance. I went through posts in citeHR but didn't quite understand. SENIORS can u put some light on this?
Regards,
Satarupa
From India, Gurgaon
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Dear laxmi,
Thanks for your good suggestion’
I also know the norms of income tax exemption but my question is that have any restriction for amount. jus for example we give the more amount in this all heads like Conveyance allowance is rs 1200/- in this amount rs 400/- is as a taxable income. Are we able for made this type salary structure?
Regards,
RAJ PANDEY
From India, Nagpur
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Thanks for your good suggestion’
I also know the norms of income tax exemption but my question is that have any restriction for amount. jus for example we give the more amount in this all heads like Conveyance allowance is rs 1200/- in this amount rs 400/- is as a taxable income. Are we able for made this type 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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