Branch Manager, LIC of India. v. ITO (TDS) (2020) 185 ITD 77/196 DTR 261/(2021)209 TTJ 1040 (Cuttack)(Trib.)

S. 17(2) : Perquisite-Salary-Medical allowance-Fixed medical allowance was given-No proof of medical expenditure was furnished-Taxable as salary income. [S. 15]

Tribunal held that medical allowance is not categorised as an allowance which bears entire exemption and, therefore, medical allowance is a fixed pay provided by an employer, and is fully taxable and employees can claim a tax benefit up to Rs. 15,000/-under medical reimbursement on production of bills and supporting document as per section 17(2). However when no proof of medical expenditure incurred by employees was furnished fixed medical allowance given by assessee employer was taxable as salary income.  (AY. 2011-12 to 2012-13)

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