02-25-2010, 03:20 PM
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
(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
