Urgent: Health insurance and 10% Medical exeption on Salaries income

Can any one here tell if the health insurance provided by the employer comes under 10% medical exemption given by Govt on Salaried income

No,If your company is providing only medical allowance to you then it will be exempted upto 10% of your basic salary.

[quote=“devastatormaker, post:2, topic:14678”]

No,If your company is providing only medical allowance to you then it will be exempted upto 10% of your basic salary.

[/quote]

Can you elaborate please?

In what cases below 10% income can be exempted from tax:

1. If company is providing medical allowance only ?

2. If company is providing medical Insurance only ?

3. If company is providing both ?

Many Thanks in advance

[quote=“abdulsami, post:3, topic:14678”]

Can you elaborate please?

In what cases below 10% income can be exempted from tax:

1. If company is providing medical allowance only ?

2. If company is providing medical Insurance only ?

3. If company is providing both ?

Many Thanks in advance

[/quote]

1.Exempt upto 10% of Basic Salary

2.Exempt if in accordance with terms of employment

3.Medical Insurance exempt but Medical allowance will be 100% taxable & included in your taxable income.

[quote=“devastatormaker, post:4, topic:14678”]

1.Exempt upto 10% of Basic Salary

2.Exempt if in accordance with terms of employment

3.Medical Insurance exempt but Medical allowance will be 100% taxable & included in your taxable income.

[/quote]

Thanks for the response. So if i understand correctly, if employer has provided both medical insurance and medical allowance then:

- Medical allowance will be subjected to Income Tax

- Medical Insurance will not be subjected to Income Tax

- Upto 10% of Basic Salary can be exempted from Income tax

Please tell me if i have understood correctly.

[quote=“abdulsami, post:5, topic:14678”]

Thanks for the response. So if i understand correctly, if employer has provided both medical insurance and medical allowance then:

- Medical allowance will be subjected to Income Tax

- Medical Insurance will not be subjected to Income Tax

- Upto 10% of Basic Salary can be exempted from Income tax

Please tell me if i have understood correctly.

[/quote]

Yes you understand correctly.