What is fixed medical allowance? #
Medical allowance is a fixed salary component paid to the employees as part of their salary CTC to meet their medical needs. Medical allowance is paid every month no matter whether the employee submits the medical bills as proof of the expenses.
Fixed medical allowance is provided along with the other salary components and forms part of CTC. Tax exemption can be climbed against this allowance by submitting medical bills at specified intervals to the employer. Exemption for medical allowance can be claimed for the medical expenses spent for self, spouse, children, and dependent family members.
