Union Budget for 2010-11 is considering to increase the exemption limit on medical, travel and gratuity reimbursement due to the inflation. The limits on medical, travel and gratuity were fixed ten years back and since then the cost of living has gone up by a huge margin giving rise to a need for revising the exemptions.

 

The non taxable medical re imbursement level was fixed at Rs.15000 per annum which now seems grossly insufficient and the government is contemplating increasing it to Rs.50000 per annum.

 

Similarly, the monthly non taxable travel reimbursement is likely to rise from its currently fixed level of Rs.800 a month.

 

There si also probability that there may be an increase in the exemption limit of gratuity payment.  Whether or not these benefits will be actually approved, will be known tomorrow when the Union Finance Minister Pranab Mukherjee will reveal the finance budget in the parliament.