Concept of Marginal relief for salary taxpayers

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<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by AbdulSamad</i>
<br />THE SECOND SCHEDULE
EXEMPTIONS AND TAX CONCESSIONS
[See section 53]
PART I
EXEMPTIONS FROM TOTAL INCOME
139 Clause (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.


Dear Samad Bhai,

i have seen this section and related clauses in ITO-2001 but due to some confusion i want to know that
You mean to say that 10 % of the basic salary is exempt from tax in respect of medical exp?? pls also clarify if the amount exceeded from 10% of medical exp then what should we have to do for computation of taxable income??


Thanks
Muhammad Umar


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