The maximum medical allowance for tax exemption is Rs. 1250 per month (Rs. 15000 per year). Suppose a company is providing a medical allowance of Rs. 1000 instead of Rs. 1250. Will the employee still get a tax exemption of the maximum of Rs. 15000 (Rs. 1250 x 12) per year, or will they receive Rs. 12000 (Rs. 1000 x 12) as a tax exemption? The same question applies to the conveyance allowance as well.
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From India, Delhi
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Thanks...
From India, Delhi
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Employees will get a tax exemption of up to ₹15,000 after the submission of medical bills. It doesn't matter how much the company mentions in the CTC details.
Similarly, in the case of conveyance, employees will receive a tax benefit of up to ₹9,600 per year.
Regards,
Vinod
From India, Kolhapur
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Similarly, in the case of conveyance, employees will receive a tax benefit of up to ₹9,600 per year.
Regards,
Vinod
From India, Kolhapur
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Hi, @vinodmahadik111!
Just summarizing: So, it means if the company is mentioning Rs. 1000 on the salary slip as a medical allowance, then still, the employee can get a maximum of Rs. 15,000 tax exemption (Rs. 1250 x 12) from his salary instead of Rs. 12,000 (Rs. 1000 x 12) with the condition that he has to show medical bills?
From India, Delhi
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Just summarizing: So, it means if the company is mentioning Rs. 1000 on the salary slip as a medical allowance, then still, the employee can get a maximum of Rs. 15,000 tax exemption (Rs. 1250 x 12) from his salary instead of Rs. 12,000 (Rs. 1000 x 12) with the condition that he has to show medical bills?
From India, Delhi
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Hi vinodmahadik111! Just summarizing: So it means if the company is mentioning Rs. 1000 on the salary slip as a medical allowance, then still, an employee can get a maximum of Rs. 15,000 tax exemption (Rs. 1250 x 12) from his salary instead of Rs. 12,000 (Rs. 1000 x 12) with the condition that he has to show medical bills?
No, he can claim a tax benefit only up to the amount which he is receiving as a medical allowance/assistance on the production of bills. In this instant case, he can claim a tax exemption up to Rs. 12,000 p.a. but not the maximum prescribed limit.
Pon
From India, Lucknow
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616No, he can claim a tax benefit only up to the amount which he is receiving as a medical allowance/assistance on the production of bills. In this instant case, he can claim a tax exemption up to Rs. 12,000 p.a. but not the maximum prescribed limit.
Pon
From India, Lucknow
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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.........
From India, Bangalore
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From India, Bangalore
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Tax Exemption (SUPERB).doc
P. TAX EXEMPTION NOTIFICATION - CHHATTISGARH.pd f