During April 2006 to November 2006, I worked in a company where TDS was deducted on taxable income. Since December 2006 I am working in new company. During my service in earlier company, my family didn%u2019t need any medical/OPD/Clinical treatment. Since December 2006 onward I spent around Rs 18000/- under medical head on my family. I want to avail exemption of Rs 15000/- per year for medical bills. Under medical allowance, I was getting Rs 1000/- per month in earlier company and Rs 1350/- per month in present company. I am clubbing my taxable income from earlier company to taxable income from present company for tax liberties for the year 2006-07. But my present account department is giving me exemption under medical head for the duration in present company i.e. December 2006 to march 2007 i.e. upto Rs 1350/- x 4 month = Rs 5400/- Please suggest me that under medical head, up to what amount I am exempted for calculating taxable income i.e. Rs 15000/- per year or only Rs 5400/-(total medical allowance for the service period in present company).
