Navigating LTA Reimbursement: Can I Use Travel Bills or Other Documents?

Hi,

Actually, in our company, we can make reimbursements every month. Every six months, we can change the amount in each section of reimbursement. Starting from the month of October, I have been entering data in the reimbursement form. I have entered amounts for HRA, medical reimbursement, and LTA. I can only receive the medical and LTA reimbursements if I submit the bills. I have submitted the bill for medical reimbursement, but I am unsure about the process for LTA. I have a question: Can I claim the LTA amount by providing travel bills only, or can I submit fixed deposit savings papers or any other document for it? Additionally, if my salary does not exceed the income tax limit, can I still receive these reimbursements?

I am new to this job and not familiar with these processes. Your help would be greatly appreciated.

Regards,
Aswini

Dear Aswini,

What is your company's policy regarding LTA and Medical Reimbursement? If the amount is fixed and they make the payment without bills, then it will attract tax as per your tax slab. If you submit the bills and flight and train tickets, then up to the extent of the amount, you will be exempted from tax.

Some companies only have reimbursement facilities in which whatever amount you are spending on medical (bills to be attached) and on Leave Travel (to be supported with tickets) will be given to the employees. In such cases, the question of tax will not arise.

Please clarify from your company policies.

With warm regards,
S. Bhaskar
9099024667

Thank you for your reply.

In my company, if we submit bills for medical expenses and LTA, we will be exempted from tax up to the specified amount. Can you please clarify how to claim the LTA benefit? This amount is being deducted from my salary every month, and I am unsure about the process. Your assistance would be greatly appreciated.

Regards,
Aswini

As per LTA, there are certain factors that need to be considered. They are:

Block Years
Claiming period
Duration of payment

Block Years: The block year is fixed by the central government. It is actually four years and changes every span of four years. The current block year is 2010 to 2013. In a block of four years, the employee can claim only two times his LTA amount within the eligibility. The "two times" can be at any time between the financial years 2010 to 2013, according to the current block. Suppose an employee doesn't claim at all in these block years, then he can claim the eligibility of this four years block in the first year of the next block, that is in the year 2014.

As per your message above, it seems that they are paying your LTA as taxable on a monthly basis. Hence, they may ask you for the bills at the year-end for exempting those amounts from tax. For more clarifications, post in this thread.

Regards,
Periaswamy K

Thank you for the detailed reply. One more doubt, if I'm unable to submit the bill at the end of the year, will they include that amount in the tax calculation or not? Or can I claim that amount only after submitting the bill? Please clarify.

Regards,
Aswini

You can claim your LTA as taxable; your claimed amount would be considered in the gross amount or taxable. You can fill the TDS return file for your excess tax deduction.

Best regards,
Vaudev