Rajesh999
Jobseeker
Dks.ica
Accounts & Audit

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Hai Friends can any body clarify that MEDICAL ALLOWANCE is same for all salaried employees or any difference in there. is there any slab rate. Regards, GOPI.
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Gopi,

Medical reimbursement up to Rs. 15,000 per annum would be subjected to FBT. However over and above this sum it would not be subjected to FBT. While explaining the logic the Central Board of Direct Taxes has clarified that at present, if any sum is paid by the employer for expenditure actually incurred by the employee for medical treatment in an unapproved hospital and it exceeds Rs. 15,000 during the year, such sum is "salary" as defined in clause (1) of section 17 of the Income-tax Act and liable to income-tax in the hands of the employee. There is no change in this position. Since such sum is taxable in the hands of the employee, the same is not liable to FBT.

However, if any sum is paid by the employer for expenditure actually incurred by the employee for medical treatment in an unapproved hospital and does not exceed Rs. 15,000 during the year, such sum does not fall within the meaning of "salary" as defined in clause (1) of section 17 of the Income-tax Act and not liable to income-tax in the hands of the employee. There is no change in this position. Since such sum is not taxable in the hands of the employee, the same is liable to FBT. The Central Board of Direct Taxes has further clarified that expenditure incurred at hospital/dispensary not maintained by employer in respect of injuries during the course of employment would be subjected to FBT except where it is a statutory obligation.

This is all about the taxability, now the quantam is depend on the companies ploicies.

Rgds,

Deepak Singh


Dear friend thanks for sending valuable information. What iam asking is when i saw one of the salary statement, there the employee who got BASIC-3000P.m and total the employee got 6000 P.m. there medical expenses are onlyRs750p.m and the employee whose salary: BASIC-4000p.m and Total that employee got is 8000p.m. this employee getting Rs.933p.m as Medical expenses. and the persons above Rs. BASIC-5000, they are getting Rs.1250p.m .so i want is why they are giving like this.
Regards,
GOPI.
Dear friend once more thanks. That means there is no minimum limit for MEDICAL ALLOWANCE. Then what about T.A. it is also like this. One more thing that is when i went to an interview they asked about Acts.(Labour.Factories act). that means i have to prepare full of these Acts.
Regards,
GOPI.
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