Please Suggest About Medical Advance In Salary

Hi All,
I am in a process of making salary slip format and freezing the components of salary. Need your help to understand how to deal with medicals , if i would like to give maximum tax benefit of 15000/- per annum, can i show it as Medical advance in salary slip and if employee produces bills by the year end make it reimbursement. Or Medical Advance become taxable if we will show it in salary slip.
Please suggest.
Thanks
Ramandeep

Hi,
The medical allowance can be shown in the Salary slip as Medical Allowance and to the extent bills are produced, the same can be deducted in the Gross Salary while issueing Form 16 at the year end.
Correct me if I am wrong.
Regards,
Paddutr

Hi,
The medical allowance can be shown in the Salary slip as Medical Allowance and to the extent bills are produced, the same can be deducted in the Gross Salary while issueing Form 16 at the year end.
Correct me if I am wrong.
Regards,
Paddutr

Hi Ramandeep,
You can do as you have proposed. Medical advance will not be txable if shown in pay slip. If the bills are not submitted, then the advance becomes Medical Allowance, which is taxable. If bills are submitted, it becomes Medical reimbursement.
However, a better practice would be to not wait till the end of the year, but to ask for bills submission every 2-3 months or even half-yearly.
Warm regards,
Devjit

Dear Ramandeep,
If you are showing Medical advance in payslip, would be taxable it is better do not show in the payslip keep it as reimbursement and that is non taxable
Regards,
John