01-26-2009, 05:59 PM
Dear,
You are right. But the issues highlighted by you are very rare case specific. Apart from these there are certain exemption to other payments received by certain class of employees of certain departments.
However, in generality, there is one medical allowance that is exempt. There could be further facets like you have described that what if a person is getting re-imbursement as well as allowance or what if only the re-imbursement is allowed etc. In that scenario situation of taxability is different.
Regards,
KAMRAN.
