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venkeesai
18-12-2009, 06:39 PM
:confused:HI to all

I am from U.T.of Puducherry

we are getting FMA Rs. 75 per month with our salary. Now my Question is
1) This Rs. 75 is to be calculated in IT calculation? or not?
2) if yes or no any orders for this issue.
3) because somebody says, that last year some orders state that there is no
need to add FMA for IT calculation.
and hence I request U to please give me reference about the issue.

Thanks in Advance
Venkeesai

tvenkatam
18-12-2009, 09:58 PM
:confused:HI to all

I am from U.T.of Puducherry

we are getting FMA Rs. 75 per month with our salary. Now my Question is
1) This Rs. 75 is to be calculated in IT calculation? or not?
2) if yes or no any orders for this issue.
3) because somebody says, that last year some orders state that there is no
need to add FMA for IT calculation.
and hence I request U to please give me reference about the issue.

Thanks in Advance
Venkeesai

Dear Friend,

Any allowance received as a part of salary income is taxable unless it is specifically exempted from computing as salary income. Medical allowance received does not qualify for exemption while Medical expenses reimbursed by employer qualify for exemption under IT Act.

venkeesai
24-12-2009, 06:35 PM
dear venkatraman sir
ok. in our case We are getting Monthly Rs. 75 (We are Teachers) in our state. it is standard for all our teachers. I think it is different from FMR (medical Reimbursement). some years ago orders released that no need to add FMA (Medical Allowance ) with salary. hence I confused with both FMA and FMR pls. clarify it clearly.

thanks in advance
venkeesai

tvenkatam
24-12-2009, 07:39 PM
dear venkatraman sir
ok. in our case We are getting Monthly Rs. 75 (We are Teachers) in our state. it is standard for all our teachers. I think it is different from FMR (medical Reimbursement). some years ago orders released that no need to add FMA (Medical Allowance ) with salary. hence I confused with both FMA and FMR pls. clarify it clearly.

thanks in advance
venkeesai

Dear friend,

Sorry to disappoint you.

Only the following form of medical related expenses are eligible for deduction from salary income vide proviso to Sec. 17(2) of IT Act.
Value of medical treatment in any hospital maintained by Govt. or local authority or approved by the Chief Commissioner of Income Tax. Besides any sum paid by the employer towards medical treatment (other than the above) is exempt upto Rs. 15000.

Deduction under Sec. 80D is available on purchase of Medical insurance policy (payment not by cash) upto 15000 for self/family and upto 15000 for parents. Deduction under Sec. 80DDB is available on medical expenses incurred/reimbursed upto 40000.

venkeesai
25-12-2009, 02:02 PM
Again Thanks a lot sir;)

Regards
Venkeesai

radhikasood
04-03-2011, 12:25 PM
Hi
Thanks for sharing the knowledge on FMA. I thought the only health coverage one can purchase is a medical insurance policy and in case of the employer it is the group health insurance policy. However, I am sure that FMA coverage would be limited only to selected hospitals and will not be as comprehensive as a medical insurance policy. Thus it is advisable to buy medical policy (http://www.maxbupa.com/buy-online).