How Much Medical Allowance is exempt from tax?
Ans:
What:
The fixed allowance paid by the employer to the company’s employees monthly (irrespective of bills submission) is known as medical allowance. It is a benefit provided to promote the health of the staff and support medical expenses incurred by the employees in a particular financial year.
How Much:
Previously Income Tax Act allowed tax exemption of up to INR 15,000 on medical reimbursements paid by the employer, but as per the recent amendments total of INR.40,000(Medical Allowances+ Conveyance Allowances) will be tax exempted.
