Conveyence And Medical Allowance Limits

Hi!
Maximum medical allowance for tax exemption is Rs 1250 per month (Rs 15000 per year).
Suppose a company is providing medical allowance as:
Medical Allowance:Rs 1000
instead of Rs 1250.
Then will employee still gets tax exemption of maximum of RS 15000 (Rs1250 x 12) per year
or he will get Rs 12000(Rs 1000 x12) as tax exemption
And same query for conveyance allowance also.
Thanks...

Hi,
Employee will get tax exemtion upto 15000/- after submission of medical bills. It doesn't matter how much company mentions in CTC details.
Same in case of Conveyance, employee will get tax benefit max. upto 9600/- per year.
Regards,
Vinod

Hi vinodmahadik111 !
Just summarizing:
So it means if company is mentioning Rs1000 on the salary slip as medical allowance, then still employee can get maximum of Rs 15000 tax exemption (Rs1250 x 12) from his salary instead of Rs 12000(Rs 1000 x12) with condition that he has to show medical bills?

No, he can claim tax benefit only upto the amount which he is receiving as medical allowance/assistance on production of bills. In this instant case, he can claim tax exemption upto 12000/- p.a. but not the max. prescribed limit.
Pon

It is the maximum limit for tax exemption not the minimum limit. If your allowances goes beyond the max limit then it is 100% taxable and no exemption.........

please help me out with below points
1. Formula to calculate monthly LTA & Medical Exp?
2. Does PF & ESIC employees contribution comes under Gross salary?
Regards,
OS

Dear All,
Union Budget 2018: Rs 40,000 tax deduction on transport and medical expenses.
As per Finance Minister Mr.Arun Jaitley :
"In order to provide relief to salaried taxpayers, I propose to allow a standard deduction of Rs.40,000/-in lieu of the present exemption in respect of transport allowance and reimbursement of miscellaneous medical expenses"
Read more at:
http://timesofindia.indiatimes.com/a...campaign=cppst
Thanks