medical allowance - compensation management - manu melwin joy

Medical Allowance Compensation Management

Prepared By

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Manu Melwin JoyAssistant Professor

Ilahia School of Management Studies

Kerala, India.Phone – 9744551114

Mail – manu_melwinjoy@yahoo.com

Medical Allowance

• Medical allowance is a fixed

allowance paid every month

to the employees

irrespective of the fact

whether they submit the

supporting bills or not.

Medical Allowance

• Medical reimbursement is a

payment made to an

employee against the

medical bills produced by

him/her subject to his/her

entitlement.

Medical Allowance

• The maximum tax benefit

available is Rs. 15,000 per

annum. Under this head,

one may avail for reduction

in the taxable income for a

maximum of or up to Rs.

15,000 for medical expenses

during each financial year.

Medical Allowance• Reimbursement by an

employer of medical expenses incurred by an employee is generally tax-free. Where an employee is allowed to get reimbursement for the medical expenses incurred by him or his family members, the entire amount of reimbursement is tax-free and is not treated as a taxable perquisite.