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.

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