Medical Allowances for salary person are exempted

[smimranhaider]

Dear Members,

I want to know either medical allowance for a salaried person is exempted for income tax or not.

Plz define in detail.

[akbarkhan2]

Dear kindly visit following website
http//www.cbr.gov.pk/tpef/FAQS/DTFAQs.asp

it says
Q. 16

Is medical allowance exempt?

A.

It is exempt up to 10% of the basic salary if employee is not entitled for free medical treatment or reimbursement of medical expenses.

Clause 139(b) Part I of 2nd Schedule to the Income Tax Ordinance, 2001.

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by smimranhaider</i>
<br />Dear Members,

I want to know either medical allowance for a salaried person is exempted for income tax or not.

Plz define in detail.

<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

[awaisaftab]

As far as medical allowance is concerned it is exempted upto 10% of basic salary. As far as medical treatment is concerned schedule 2 of Income Tax Ordinance,2001 states the following

(a) The benefit represented by free provision to the employee of medical
treatment or hospitalization or both by an employer or the reimbursement
received by the employee of the medical charges or hospital charges or both
paid by him, where such provision or reimbursement is in accordance with the
terms of employment
Provided that National Tax Number of the hospital or clinic, as the case
may be, is given and the employer also certifies and attests the medical or
hospital bills to which this clause applies;
(b) any medical allowance received by an employee not exceeding ten
per cent of the basic salary of the employee if free medical treatment or
hospitalization or reimbursement of medical or hospitalization charges is not
provided for in the terms of employment; or

[smimranhaider]

Thanks for your kind support

[khurram2004]

Hi
Please clarify,
As far as medical allowance is concerned it is exempted upto 10% of basic salary. if some getting 15% medical allowance then income tax will be on 15% or on 15-10= 5%.
Special Science & Tecnology allowance exempt or not.

khurram2004

[nomanejaz2009]

if salary break up is like that,

Basic Salary 25000
House Rent Allo 5000
Medical 6000
Conveyance 300
--------
36, 300
========
to Aap Medical allowance ka treatment is tarah kraen ge,

Basic Salary (25000*12) 300,000
H.Rent All (5000*12) 60,000
Medical (6000*12) 36000
Exempt of 10% of basic salary (30000) 6000
Conveyance (300*12) 3600
-----------
369,600
===========
This is your taxable income, clear?

[LapTop]

ADD Basic Salary (25000*12) 300,000
H.Rent All (5000*12) 60,000
Medical (6000*12) 72,000
Conveyance (300*12) 3600

Total Income = 435,600

Less Exempt income(medical allowance 10% of Basic) = 30,000

annual taxable income = 405,600

[nomanejaz2009]

sorry lap top bhai calculation kuch galat hogai thi .

[LapTop]

Koi Baat nahi ji insan ghalti kar k hi sikhta hay,,, bus shart ye hay k 1 hi ghalti dobara na ho,,,,,,,,,,,,,

ghalti to kisi say bhi ho sakti hay may bhi bohat ghaltiyan karta hon isi waja say jaldi sikhta hon hahahahahah

[nomanejaz2009]

jee blkul inshah allah yeh galti dobara nahi hogi.