How much is the amount allowed for medical reimbursement?

Question

In our pay structure we have Basic,HRA,Medical allowance

Can we claim medical reimbursement to exempt from TDS.

How much is the maximum amount allowed for medical reimbursement?

Answer 1

Medical Reimbursement as the name suggest is a reimbursement and not salary. Hence reimbursements do not attract any tax for the employee. However the employer has to pay the Fringe Benefit Tax.  

The maximum allowed tax-free reimbursement is 15000 per year which works out 1250 per month. Most companies pay the reimbursement on a pro-rata basis.

Answer 2

Medical reimbusement is Rs.15,000 per year.

Read for pay structure optimization

http://mytaxes.in/index.php?topic=35.0

Also read, income from salary

http://mytaxes.in/index.php?topic=17.0

Answer 3

The maximum limit for medical exemption is Rs. 15000/- p.a. This can be claimed as exempted income from deduction of TDS