Confused About LTA and Telephone Bill Reimbursement? What Happens If I Don't Submit Bills?

Hi all,

I have chosen LTA and telephone bill reimbursement in my salary package structure for this financial year 2011-2012. LTA - 30000 INR Telephone - 24000 INR My company is not paying this amount in the monthly salary. It will be paid only if we submit the bills. Will this amount be paid to us in the last month of the financial year (March) if I don't submit the bills?

If you are not submitting proof for claiming LTA, it will be paid to you at the end of the year, and the income is taxable.

If you are not submitting the bills for LTA or telephone reimbursement, then the amount will get accumulated and be paid to you at the end of the year, i.e., in March. Let me know if I can help you any further.

This would depend on your company rules. Normally, telephone reimbursement will be denied and will lapse if not claimed on time. Most companies even need this done on a monthly basis.

LTA: most companies will give without proof of travel, but it will be fully taxable in such a case.

You will need to ask your HR department whether you can change the structure and when. Mostly, the change will be allowed after your next approval. It depends on how flexible your company is.

No provision as per IT guidelines. If the company pays the bill, you are exempted, and it will not be reflected in your gross income.

Pon

Just to clarify, a salaried person cannot claim any expenses as a deduction from income for income tax purposes. Whatever is paid by the company, on the other hand, if falling under the definition of perquisites, will get added to their income for tax purposes. Fortunately, the payment of telephone or mobile bills is deemed to be solely for business purposes and not taxable as perquisites. However, if telephone bills are reimbursed to you instead of being paid directly by the company, they may be added to your salary by the income tax officer. So, that is avoidable.

"No provision as per IT guidelines. If the company pays the bill, you are exempted, and it will not be reflected in your gross income." - pon1965

Even I had a similar query. I am not getting paid for LTA and Telephone reimbursement. It will be paid only if we submit the bills. Will this amount be paid to us in the last month of the financial year (March) if I don't submit the bills?