Fixed Medical Allowance is not exempted from Income tax. A request is made by a Retired Govt Official that FMA to be exempted from Income Tax
Shri. Nitin Shaw, Retired CH OS views on Fixed Medical Allowance Exemption from Income Tax :
Fixed Medical Allowance Exemption from Income Tax
At present Retired Employees are granted Fixed Medical Allowance @ Rs.1000 per month who has opted no OPD and it’s compulsory not to grant FMA to retirees who resides within 2.5 km from health unit.This amount is taxable income and income tax is leviable. As you are aware that on 1st consultation, fee charged us ranging from Rs.200 to 1000 and lesser amount for another consultation. You have to pay conveyance charged to reach Hospitals/Clinic.
Since most of retirees are under medication for one or other diseases, this can’t be considered as an income and taxed levied. This is not sign of healthy welfare scheme by any Governments.
However, such RETIREES who opt for FMA are entitled for MEDICINE for CHRONIC DISEASES that too only after Diogenes by outside Hospitals /clinics. For the medicines you have to visit railway hospital and some expenditure to be incurred.There is no system of prior investigation by Hospitals as early diagnosis may result in avoiding severity of disease. If prior diagnosis done, huge expenditure can be saved.
Now see irony of system, Governments Employees are being paid Transportation allowance depending on their pay matrix level and DA thereon. In railways, many Employees who availed RCP and residing in Railway colonies & their offices are nearby their residence does not incurred or little expense, this is exempted up Rs 19600/- from income tax. This is sharp contrast.
Further to this, many Employees at the time of retirement doesn’t opt FMA as they simply sign the papers prepared by Welfare inspector. They are unaware of consequences of non availing FMA. Due to this such retirees who resides in remote areas where no railway hospital is available near their residence can not visit for consultation and MEDICAL treatment as OPD. THIS amount to double loss.
Looking to the above,
1) FMA to be completely exempted from income tax,
2) FMA must be sanctioned to all unless specific unwillingness is given in writing.
3) Allow investigation by Railway Hospital for diagnosis to avoid huge expenditure by early detection and collect FMA paid for that month and also allowed to refund incase of visit for OPD consultation.
4) All CGHS approved Hospitals be treated as empanelled Hospitals as approved by Central government.
National Council JCM Staff Side is Requested to take up the issue with Governments for necessary action.
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