Medical allownce

Question BankCategory: Income TaxMedical allownce
Rahul arya asked 4 years ago

A person claim medical allowance will he claim deduction u/s 80 D as preventative heath checkup

1 Answers
Ajay answered 4 years ago

Dear Rahul,
Medical Allowance is fully taxable. If an employee is receiving any medical allowance it will be taxable. Reimbursement of medical expenses upto Rs. 15000 was exempt upto FY 2017-18. But this exemption is also withdrawn from FY 2018-19 and in place of it a Standard deduction of Rs. 40000/- is given from taxable salary. But medical allowance is taxable.
Section 80D: Deduction for Preventive Health Check-up
A new deduction that has been allowed under this section is deduction for Preventive Health Check-up. A deduction of Rs 5000 would be allowed under Section 80D for payment of preventive health check-up of either the individual himself or his family members which include parents and dependent children.
This deduction of Rs. 5000 is not in addition to the deduction of Rs. 25,000/Rs 30,000/Rs. 50,000 for medical insurance premium u/s 80D but is included in this limit.
It is important to be noted that Rs. 5000 is the maximum total deduction allowed. This deduction is not per person but in total. So if a person pays any amount for preventive health check-up of himself + dependent children + parents, the gross total deduction allowed would be Rs. 5000. 

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