Concept of Marginal relief for salary taxpayers

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<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by talha.moin</i>
<br /><blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by [email protected]</i>
<br /><blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by talha.moin</i>
<br />medical exempt? 10% of basic salary? can we deduct that even if the employee hasnt availed it??
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Dear Frnd !

Thnx for supporting with ur kind comments for understanding the concept of marginal relief. but as i know that medical allowance shall be available for computation of taxable income and medical reimbursement shall be exempt from tax.

Thnx

Muhammad Umar - PIPFA (f)




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Dear Umar,

thanks for explaining. but i am new to all this; thats why couldnt grasp the whole thing.

did you mean that if e.g. Mr A's basic salary (and total income for the ease of calculation) is 10000 per annum then, as far as i know, he is eligible for 10% of exemption on medical allowance i.e. upto 1000. if he gets Rs. 1200 reimbursed from employer on account of medical allowance then his taxable income will be Rs 11200? Did I get right???
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Dear Talha Bhai

As i know that medical reimbursement shall not included in computation of taxable income coz this is exempt from tax.

Regards
Umar