Fixed Medial Allowance from employer, is it taxable?
I am receiving Fixed Medial Allowance from my employer. Will it be taxable?
Yes, the fixed medical allowance
whenever paid to any employee on monthly basis. As it is fixed medical
allowance, the employee is not asked for producing the bills of expenses over
medicines and medical treatments. It is considered that it is an income in the
hands of employee. Therefore, the fixed medical allowance is completely taxable
in the hands of an employee. It will be considered as ‘Income under head of
Salaries’. While deducting TDS, the employer will consider it an income of the
employee.
