Can an employee claim the Medical exemption (U/S 10) of Rs 15000 while submitting the ITR,
eventhough its not one of the component in the salary structure but have incurred the expenses of Rs 25000.
We have only four components: Basic, HRA , Convenyance , Spl Allowance
Lets say I get: Monthly Basic: 10000 ; HRA 5000 ; Convenyance 800 ; and Spl Allowance : 13000
Total: Rs 28800
Now Can I while filing ITR, reduce the Spl Allowance by 1250 (For Medical)
So my taxable will be: 10000 + 11750 = Rs 21750*12
Can I Do like this to save tax.
From India, New Delhi
Medical reimbursement will have to be component in the salary structure for income tax exemption. You cannot reduce Spl. Allowance to the extent of Rs. 15,000 per annum in order to claim the exemption.
From India, Madras
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