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Medical Allowance Tax Exemption Pakistan 2026 — Limit & Rules

June 24, 2026Aitsaam Ali6 min readSalaried Employees

Bohat se salaried employees apni salary slip mein "medical allowance" dekhte hain lekin ye nahi jaante ke iska kitna hissa tax-free hai. Pakistan mein medical allowance basic salary ke 10% tak income tax se exempt hoti hai — is guide mein hum ye limit, hospitalization facility ka rule, aur exemption sahi tareeqe se claim karne ka tareeqa dekhtay hain.

TL;DR

Medical allowance basic salary ka 10% tak tax-free hai — agar employer free medical facility nahi de raha. 10% se zyada hissa taxable hai. Free hospitalization facility milne par poori tarah exempt hoti hai lekin dono benefits sath claim nahi hote.

Medical Allowance Exemption Limit

ScenarioExemption
Cash medical allowance (no employer facility)10% of basic salary — exempt
Medical allowance above 10% of basic salaryExcess amount — taxable
Employer provides free medical/hospitalization facilityFacility fully exempt (allowance not claimed separately)
Both allowance + free facility claimed togetherNot allowed — only one benefit applies

Basic salary ka matlab: Exemption "basic salary" par calculate hoti hai, poori gross salary par nahi. Agar aapki basic salary Rs 1,00,000/month hai, toh Rs 10,000/month tak medical allowance tax-free hai.

Free Medical Facility vs Cash Allowance

Employers do tareeqon se medical benefit de saktay hain — dono ka tax treatment alag hai:

  • Cash Medical Allowance: Har mahine salary ke sath fixed amount milta hai — 10% of basic salary tak exempt
  • Free Hospitalization/Medical Facility: Employer directly hospital/clinic ka kharcha uthata hai employment terms ke tehat — ye poori tarah exempt hoti hai, 10% limit apply nahi hoti

Ek employee ko dono benefits ek sath (cash allowance bhi aur free facility bhi) nahi milte — employer generally ek policy choose karta hai apne employees ke liye.

Calculation Example

ItemAmount
Basic Salary (Monthly)Rs 80,000
Medical Allowance ReceivedRs 10,000
Exemption Limit (10% of Basic)Rs 8,000
Exempt AmountRs 8,000
Taxable ExcessRs 2,000/month

Is example mein Rs 2,000/month (Rs 24,000/year) normal salary income ki tarah taxable hoga aur employer isko Section 149 ke tehat withhold karega.

Return Filing Mein Exemption Kaise Claim Karein

  • Employer se salary certificate/Form-J lein jisme medical allowance alag se mention ho
  • IRIS return mein gross salary enter karo, phir exempt medical allowance ka hissa "exempt income" column mein show karo
  • System khud taxable salary calculate karega exempt amount minus karke
  • Agar employer ne already sahi calculation kar ke tax withhold kiya hai, return mein sirf verify karna hoga

Common mistake: Kai employers galti se poori medical allowance ko exempt treat kar dete hain bina 10% limit check kiye — is se galat withholding hoti hai aur baad mein FBR audit mein discrepancy nikalti hai. Apni salary slip khud verify karna zaroori hai.

Kamboh Associates Se Salary Tax Review

ServiceFee
Salary Slip Tax Review (Exemptions Check)Rs 1,500
Income Tax Return Filing (Salaried)Rs 3,500
Employer Withholding Discrepancy ResolutionRs 3,000+

Aksar Puchhe Gaye Sawal — Medical Allowance Exemption

Medical allowance par kitna tax exemption milta hai Pakistan mein?
Medical allowance basic salary ka 10% tak tax se exempt hai — sharat ye hai ke employee employer ki taraf se koi free medical/hospitalization facility na le raha ho. Agar 10% se zyada allowance milta hai, extra amount taxable hoga.
Agar employer free medical treatment deta hai toh allowance ka kya hoga?
Agar employment terms ke tehat employer free medical/hospitalization facility deta hai (bajaye cash allowance ke), toh wo facility poori tarah tax-exempt hoti hai — 10% ki limit is case mein apply nahi hoti. Dono benefits (allowance + free facility) sath mein claim nahi ho saktay.
10% se zyada medical allowance mile toh kya hoga?
Basic salary ke 10% se zyada jo bhi medical allowance amount hai, wo normal salary income ki tarah taxable ho jata hai aur slab rates ke hisab se tax lagta hai. Employer ko is excess amount par Section 149 withholding tax deduct karni hoti hai.
Medical allowance exemption claim karne ke liye kya document chahiye?
Employer ki salary slip/certificate mein medical allowance alag se break down hona chahiye. Return file karte waqt total salary se exempt medical allowance minus karke taxable salary declare ki jati hai — employer ka Form-J/withholding certificate isko verify karta hai.
Return filing mein medical allowance exemption sahi calculate karwane ke liye Kamboh Associates kya karti hai?
Kamboh Associates aapki salary slip check kar ke exact exempt amount calculate karti hai aur return mein sahi tareeqe se declare karti hai — taake na zyada tax pay ho na koi galti FBR notice ka sabab bane. WhatsApp 0328-4675162.

Apni Salary Slip Free Mein Review Karwao

Medical allowance sahi exempt ho raha hai ya nahi — Kamboh Associates 15 minute mein check kar deti hai.