What is the difference between Medical Reimbursement and Medical Allowance wrt Salary components and Income tax calculation
From India, Delhi
From India, Delhi
Dear Sachin,
Medical Allowance is a fully taxable salary component whereas Medical Reimbursement is a perquisite which is exempted from tax to the subject to a maximum of Rs. 15,000/- per a F.Y. Medical Reimbursement is a HR policy matter.How ever, employee has to submit bills to the extent of 15,000/- to avail the tax exemption. Depending on the policy made by HR department, it is acceptable. In other words company may implement a policy that employee should submit the Original Bill of Medicine, If a bill exceeds a value of Rs. 500/- should be accompanied with Doctor Prescription etc.. This policy framed by the company may probably be observed by the Tax department.
Sr. Manager (HR & Legal)
From India, Guwahati
13Medical Allowance is a fully taxable salary component whereas Medical Reimbursement is a perquisite which is exempted from tax to the subject to a maximum of Rs. 15,000/- per a F.Y. Medical Reimbursement is a HR policy matter.How ever, employee has to submit bills to the extent of 15,000/- to avail the tax exemption. Depending on the policy made by HR department, it is acceptable. In other words company may implement a policy that employee should submit the Original Bill of Medicine, If a bill exceeds a value of Rs. 500/- should be accompanied with Doctor Prescription etc.. This policy framed by the company may probably be observed by the Tax department.
Sr. Manager (HR & Legal)
From India, Guwahati
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Medical Reimbursement Format.doc
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