LTA and medial Reimbursements

As we are in mid Feb of the year and its tax time , i thought to talk a bit on LTA and Medical reimbursement benefits .Though many of you might already know about it , let me go over it in brief for readers who have less knowledge about it .

You have a limit up to which you can claim your spent amount on LTA and medical bills and save tax on that part . If you dint claim it, for that much amount you will be taxed .

Limit for LTA : 50,000 per year
Limit for Medical Bills : Rs 15,000 per year

So from your total salary , you can save tax on this 65000 if you want , if you dont claim it , you will have to pay tax on this part .

What is LTA ?

LTA is Leave Travel allowance , is the benefit given to a salaried employee . You can claim travel expenses from any one journey in a year .

– There is a block of 4 yrs decided by govt ( current block is 2006-2009) . In a block you can claim LTA any two years . for other 2 yrs you cant claim it , so total 50,000 will be taxable in those 2 yrs .

– You can carry 1 LTA claim for next block , which you have to claim in the first year of next block .

– You cant claim LTA 2 times in a year .

– These blocks are not financial years (April 1 to March 31); they are calendar years (January 1 to December 31).

If your LTA is not utilised, it gets added to your salary and you will be taxed on it.

– LTA covers travel for yourself and your family. Family, in this case, includes yourself, parents, siblings dependent on you, spouse (even if your spouse is working) and children.

– The entire cost of the holiday is not covered. Only the travel costs are covered. So, whether you fly, hop on to a train or take public transport, you will have to show the ticket to claim your LTA. This means you will need to keep your air, rail or public transport ticket.

Medical Reimbursement

You can also claim deductions on the medical bills for medicines and doctor visits . You just have to get the bills and submit a proofs .

The bills can be in the name of you or your dependents .

Final Note : Utilising this benefit just requires you to keep the documents ready . many people do not claim this benefit because they are too lazy of keep the documents safe . Don’t be lazy …

186 CommentsAdd Comment

  1. Anil

    Hi,

    I travelled from Bangalore to Jammu via Delhi by air with my family. From Jammu we travelled to Srinagar by road for sightseeing. Our return journey to Bangalore was from Srinagar via Mumbai by air. Can I claim LTA for the trip, since my destination was Jammu while going to J&K, but I travelled back from Srinagar on return journey? Please advise if I can claim LTA exemption for the airfare.

    Thanks.

  2. Laxman R

    Hi Manish,
    Can we submit the medical bills Rs 15000 as single or we have to submit Rs 1250/ month for income tax purpose.
    Thanks in advance.

    • You need to submit any number of bills totalling Rs 15,000 in the entire year . Its not mandatory that its 1250 each month . All what is required is 15k in a year !, even if the bills are of same months. Thats ok !

  3. Abhijit Shete

    Dear Manish,

    Last month, my mother (Dependent Parent) undergone Cataract Surgery. I have the doctor’s bills regarding this. My question is can I claim the expenses for tax deduction and where?

    Regards,
    Abhijit Shete

  4. vishal

    Hi,

    i want to know that if i don’t submit my Petrol Reimbursement Bills to the company. Does they Still pay the Reimbursement amount to me or going to stop it as it was mentioned that it was payable against the submission of bills. so , if i don’t submit bills. They are going to stop paying it or it was just Taxable in my salary. Hoping for Early Answer.

    • From what I understand , Petrol Reimbursement is not a standard reimbursement like HRA or LTA. Its a unique thing provided by your employer for your travel. So if you don’t provide the bills, it means you have not travelled, and it should not be payable

  5. Swaroop

    The calendar year to apply LTA is from January 1st to 31st December of current year. If I travel on 27th December till 3rd January. You mean the IT team will consider my travel only till 31st December. If yes, then can I apply this leftout 3 days travel in current year. Please clarify

  6. Jagdish Panwar

    Dear Manish,
    I have taken LTA in Mid Mar-14. Since my company took all savings and LTA related documnets in Jan-14, i was not able to submit my documents. Can i submit these LTA documents now and take benefit in this F.Y.?

  7. Vineet

    Hello,
    I have medical bills from Dec’13 till March’14 – can they be claimed for deduction in FY 2014-15 (april ’14 – mar ’15)?

    Thanks!

  8. Manish Sharma

    Hi Manish,

    My company has changed head ‘Medical Expense Allowances’ to ‘Medical Reimbursement’ on Aug 14. Can I submit medical bills that are generated in April 14 to July 14 for taking benefit.

    Thanks

  9. Pankaj Deshpande

    Hello,
    I have one Query.
    I have not submitted LTA proofs anytime before so can I claim the same while filling return now ( 2014 ) ?
    I was on leave from 23rd July 2013 – 1st Aug 2013 so can I claim the LTA for this period while filing return now ??

    also suggest how to show these Bills while filling return as there is no placeholder to mention the LTA amount.

    Regards
    Pankaj

  10. Vijay HS

    Hello Manish,
    I had submitted my medical bills in my office and by mistake it is not considered in my form 16. How can I take the refund for the tax which is deducted for this (Rs.15,000) while filing my returns? Please let me know.
    Thanks in advance!
    – Vijay

  11. Deepali

    Hi Manish,

    Please advise if the following can be considered under medical reimbursements, considering we have bills for these:-
    1. Baby milk powder
    2. Vaccination
    3. Contact Lenses with power
    My employer pays 15K annually (distributed equally each month) and we need to submit bills to get tax exemption on this amount. But I am not clear if the above items can be considered or not.

    Thanks !

  12. Akshay

    Hi Manish,
    I have claimed my LTA for 2010 in the year of 2011 & later on I have claimed my LTA 0f 2011 & 2012 in the Year 2013. Hence I have my LTA two times in the block of four years 2010-2013 & still I have to claim my LTA for 2013.
    My question are I know I cant apply for LTA tax exemption but may I ask my company to give me my LTA amount after deducting applicable tax.?
    Does I need to show any journey proof like tickets, boarding pass etc though I am ready to pay applicable tax on my LTA amount?
    Does I need to take leave claim my this LTA as I am not planning to go on holiday to claim my LTA?
    How it will effect on my LTA EXEMPTION for the next block of 2014-2017.

    Regards,
    Akshay

  13. Mahesh

    what if the journey is performed in Jan 14, will it be claimed in block 2010-13 or in block 2014-17 because both blocks fall in different financial year (13-14 & 14-15 respectively).

  14. Mujahid Kareem

    Hi Manish,
    I need to know if an employee had joined a company in April 2012 and leaves in November 2013 and hasn’t claimed LTA for over 19 months.

    He now leaves the company and will he be required to submit the LTA proof document enabling the company to include this component in his F&F settlement? Or, the company can straight away pay the accumulated LTA for 19 months and the employee thereafter becomes liable for filing his tax individually later?

  15. Sarthak

    If our medica reimbersement is not claimed…will it be paid as a part of my salary after tax deductions at the end of the year just as LTA ?

Leave a Comment