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LTA and medial Reimbursements

by Manish Chauhan · 171 comments

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 …

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{ 169 comments… read them below or add one }

1 Madhab December 21, 2009 at 4:02 pm

A few days back there was a news – we don’t have to submit the proof of travel for claiming LTA. However if asked by the IT dept we have to show it. Now I am hearing from my company CA that we can’t claim expenses incurred in Private Travel (Cars, Van’s taken on rent) in LTA. Is it true?

Madhab

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2 manish December 21, 2009 at 4:11 pm

Madhab

As per my knowledge Travel expenses should be covered . Ask your CA why its not covered ?

Also travel proofs may still be required for quite some time ,. I have no much idea why

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3 Prathima November 8, 2013 at 12:53 pm

Private vehicles like Cars or Vans bills are not allowed.
It should be either train/ bus / flight only.

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4 Arpit March 17, 2014 at 4:07 am

Taxi fare can be exempted as LTA. I just did it.

But there is a catch, You dont get complete exemption, Cab Travelled will be treated as 1st class Train Fare, So.

No. of kms travelled * price of 1st class train fare * No of Person. = Tax Exemption under LTA.

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5 Manish Chauhan March 26, 2014 at 7:17 pm

Thanks for sharing that !

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6 Shantharam January 5, 2010 at 1:06 am

Manish,

My company provides me LTA equal to my basic salary. I also have the option to increase or decrease my LTA amount for the year. Based on what to you said above, do you mean that i can increase this amount till 50k for me to get full tax exemption on it ?

However, similar to madhab, my employer says that even if i travel on a public transport like a four wheeler SUV and spend an amount of 50k, i will only be given tax exemption only the charge equal to the amount of to and fro first class train fares from the source and destination for me and my dependants. Is this justified?

Shantharam

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7 manish January 18, 2010 at 5:46 pm

Shantharam

50k limit is from govt .Some employers lessen this amount as majority is not able to use it fully .

Regarding your question on public travel , you should be able to claim travel cost (cost of petrol) . One of my friend has recently done that and he faced no issues from his employer .

Manish

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8 roshan February 4, 2010 at 5:50 pm

hi

I am silent reader of your blog . Your blogs really helps me to increase my financial knowledge . I have a dbt .

If I carry forward one of my LTAs(from the current block) to next block(2010-2013) and claim it in 2010, tax relaxation will be based on which year’s income? 2009 or 2010

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9 Manish Chauhan February 4, 2010 at 6:26 pm

Roshan

Nice to get a comment from you . The tax relaxation will always be for the year in which you claim it, carry forward does not mean that you can produce the bills for last year , its just the carry forward of the chance of claiming it .

Manish

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10 Pavan March 8, 2011 at 9:03 pm

Dear Manish,

I am really very thankful to you to introduce such informative blog on financial matters. I got this blog link from one of my friend when i was trying to get rid of some small financial issues and confusion on such matters. now i have a good and clear points on some financial matters, what i read on this blog… so thanks again…

Now I have a small question on this matter as you pointed out that we can claim LTA only two times in 4 year block to get tax exemption and if left one claim on current 4 year block then can carry forward for next 4 year block but must be claimed in 1st year of next block. Rite? so my question is that in next 4 year block, we can claim LTA 3 times, Rite? and it’s only applicable when you left your claim in your last block.

and other confusion on your point: “- 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 .”

if we have 50K for 1 year LTA claim means 2Lac for 4 year and
if we claim 50k in 1st yr and 50k in 2nd yr and we can’t claim for our 1Lac.. rite.? but you said that “so total 50k will be taxable in those 2yrs”… may be i am not getting your point or correct me.

Regards,
Pavan :)

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11 Manish Chauhan March 8, 2011 at 10:42 pm

Pavan

Thanks for asking , Lets take it one by one

1. Yes you can claim LTA 3 times in 4 yr block if you dont utilize all of them in the last block . But one of them has to be claimed in first year

2. 50k is exemption for 1 yr , which means you can get exemption of total 1 lac in 4 yrs block , which is 50k each in 2 yrs .

Note that exemption means we save tax on that much amount , we get the money anyways . SO you will get 50k as LTA in each 4 yrs just that for 2 yrs you will save tax on that, and for rest 2 yrs you will pay tax on that 50k .

I hope its clear now , else ask again

Manish

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12 Pavan March 9, 2011 at 10:34 am

that’s g8.. thanks,…. Clear now.. :)

Pavan

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13 Pavan March 16, 2012 at 11:20 pm

Hi Manish,

I just wanted to confirm that current 4 yrs block for LTA is 2010-2013. so if i want to claim LTA in 2012 then it is valid from 1st Jan 2012 to 31st Dec 2012. is it? as per my knowledge, it’s not based on financial year. I took one week leave in Jan 2012 first week and wanted to claim LTA based on OR is there any provision that we can claim LTA with in one month after taking leave of minimum 5 days.
please confirm.
Thanks

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14 Manish Chauhan March 17, 2012 at 11:28 am

Pavan

You should be on leave to claim the LTA benefit . And its from one financial year to another.

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15 G Dutt February 9, 2010 at 6:11 pm

Hi,
for the LTA claim, is an award miles based air ticket also valid ?
Is the boarding pass necessary ?

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16 Manish Chauhan February 9, 2010 at 9:08 pm

G Dutt

You need to submit the boarding pass , its mandatory . Award miles based ait tickets are not valid , because its not something you paid money for, its a benefit from company side :)

Keep coming , nice to see your first comment .

Manish

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17 Jay Ludhwani February 22, 2010 at 10:44 am

Hi,

I would like to know what does dependant exactly mean here?? Is it financially dependant? If yes, then what level of annual income is required to define a person as independant? In other words, when can I say my parents are dependant on me as they will always have some source of income.

Awaiting a prompt response,

Thanks,
Jay

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18 Manish Chauhan February 24, 2010 at 6:24 pm

Jay

by dependent we mean “financial dependent” only . So the level of insurance taken has to be inline with the depth of financial dependency , If your parents have source of income , and they can take care of themselves , then you dont have to take any insurance .

Manish

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19 Franklin May 7, 2010 at 12:38 am

Can a company define below LTA policy:
1) LTA amount will be paid only for Level/Grade 4 and above employees.
2) LTA amount will be paid to employees below Level/Grade 4 after been with the company for one year (But the company offer letter says LTA(Grade-Wise Fixed Anual Benifit)

I am a grade 2 employee, I am not willing to use LTA at all. But company is not paying me that amount as part of monthly salary on pro-rata basis. Company policy says G2 employee cannot not claim LTA in the first year (Means LTA will be given, but after taxing it that to after one year).
I dont have any problem with tax, I am ready to pay tax monthly if i get the LTA pro-rata amount in my salary itself.

My question is can a company
a) Define different LTA rules based on employee grades?
b) Say, LTA will not be given (as claims/not claims) to G2 employee in first year of the employment?

Please give clarity on this.

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20 Manish Chauhan May 7, 2010 at 1:06 am

Franklin

I believe they can , Will have to find out more on this .

Manish

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21 Sunil Date May 7, 2010 at 11:21 am

As far as i know, giving leave travel allowance (LTA) is a prerogative of the company, as a perquisite or a social welfare benefit. If it is given in the form of LTA then it may be tax free under certain conditions.

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22 Manish Chauhan May 7, 2010 at 2:21 pm

Sunil

thanks for the information .

Manish

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23 Sanjay June 1, 2010 at 2:03 pm

I know it is important to show that the employee was not attending office for the period that he claimed his LTA. However, is it mandatory to use ELs (Earned Leaves) to claim LTA? I had a few CLs and Compansatory Offs (offs in lieu of working on off days) that I wanted to use. Can I use those or is it mandatory to use my ELs?

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24 Manish Chauhan June 1, 2010 at 11:03 pm

Sanjay

I am not sure on this, however you should have taken the leave , any leave is ok i guess .

Manish

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25 Saurav Sinha December 7, 2010 at 9:08 pm

Hi Sanjay n Manish… I checked with my Accounts deptt… We’ve to take only ELs or PLs for claiming LTA…

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26 Manish Chauhan December 22, 2010 at 2:20 pm

In that case you have to take those only

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27 Sriram August 3, 2010 at 12:32 pm

Can LTA be claimed only for Travel on Shortest route ?
For ( e.g)
1.)If i am going to Shirdi from Chennai Taking a day trip on Hyderabad on a Private A/C INNOVA Car can the total travel cost be taken for Tax Free.
2.)My Driver bata comes under Tax Free or not ?

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28 Manish Chauhan August 4, 2010 at 2:50 am

Not sure

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29 Sachin August 5, 2010 at 1:03 pm

Can one cliam LTA for international tour

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30 Manish Chauhan August 5, 2010 at 6:25 pm

NO

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31 Mohommad Shaikh September 28, 2010 at 1:06 pm

If the LTA amount gets increased in the middle of the year, will the new LTA be applicable for the complete year
or the old LTA will be applicable till the month when the LTA was increased & new LTA for the remaining months.

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32 Manish Chauhan September 28, 2010 at 1:30 pm

Mohommad

LTA is to be used once a year, not more than once in a year , So it does not depend when its increased , however its fixed at 50k per year . Is it differnet for you ?

Manish

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33 Mohommad Shaikh September 28, 2010 at 2:38 pm

Hi Manish,

At the start of the year my LTA component was X, now i had a salary revision & the LTA component has increased to x+y. The compensation team says the old LTA will be calculated for the last 4 months & the new LTA amount will be applicable for the remaining 8 months.
As per my understanding the complete new LTA should be given to me. Please clarify.

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34 Manish Chauhan September 29, 2010 at 3:08 am

Mohommad

As far as I know you will CLAIM your LTA one in a year , thats all , so what is the funda of calculating it for different months , are you sure its LTA , its applicable for 1 trip in a year .

Manish

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35 Saurav Sinha December 7, 2010 at 9:24 pm

Hi Mohammad… If U had already opted LTA in Ur choice pay then U may request Ur Acc deptt to change the pre salary increment amount to post increment… In my case I had not exercised LTA but after getting my salary revised in Sept’10, I requested my Acc deptt to include it in my Choice Pay and they agreed. So I can now claim LTA as per my revised basic salary!! 1 more thing, my LTA claim request was rejected in Nov’10 coz Acc deptt says the Service Tax has to be included in the bills. Can any1 plz confirm on this development as many colleagues claims got accepted previously.

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36 Manish Chauhan December 22, 2010 at 2:21 pm

Saurav

I suggest you take views from forum members in this ; http://www.jagoinvestor.com/forum/

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37 Arun February 23, 2011 at 10:58 am

My company doesn’t provides LTA claim facility..? How can I then claim it…?

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38 Manish Chauhan February 23, 2011 at 11:37 am
39 venkat Deshmukh January 6, 2012 at 1:31 pm

We get LTA after competition of 1 year in the company .If I leave company in 1.8 year after claiming 1 LTA for last year.can I get payment in final settlement for LTA on pro rata basis.if we don’t get this payment which is part of our ctc there is no point to avail LTA option in our salary for sake of 10 or 20% tax benefit. Please explain.

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40 Manish Chauhan January 7, 2012 at 12:33 pm

Venkat

Yes ,, you will get your LTA money on prorata basis once you leave the company without availing the LTA money

Manish

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41 Virendra Nath Pandey March 28, 2012 at 9:32 pm

I have similar situation. I worked for a company for 18 months. They had paid my LTA for the first year. After 18 months I have been separated from the company. Now company is saying we will not pay the LTA as pro-rata basis (even after tax deduction).

What is the rule behind this? Is decision/rule be different for different company. As in the past I have received LTA as pro-rated also. Kindly clarify.

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42 Manish Chauhan March 29, 2012 at 11:13 am

Virnedra

As you have spend only 50% of the year in this company , they are liable to pay only 50% , which is obvious.

Once you move to another company which again has LTA , they will pay for 50% of the year only . Wont they ?

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43 Saket Kumar January 10, 2012 at 11:21 am

Hi Manish,
I have some doubt.I am living in Bangalore and my parents live in Ranchi and we plan for a trip to Jammu.So we met in delhi.Can I get tax benefits for ticket from Bangalore to delhi and Dhanbad to Delhi.

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44 Saket Kumar January 10, 2012 at 11:26 am

Sorry it’s Ranch to Delhi not Dhanbad to Delhi

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45 Manish Chauhan January 10, 2012 at 5:50 pm

Saket

Tax benefit for travel is not there in income tax, only you can take LTA benefit with your family ,but that has to be only from place A to B and back to B to A

Manish

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46 Rahul January 12, 2012 at 6:16 pm

Hi,

I was trying to claim LTA in my company but they say i have to show 3 days of earned leaves.But as it was an urgent trip and not planned i applied for Leave without pay since i used all me earned leaves earlier.

Is is a mandatory policy to show 3 earned leaves.

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47 Manish Chauhan January 12, 2012 at 6:18 pm

Rahul

LTA can be claimed only if you are on PAID LEAVE . Its mandatory , so you cant claim it , dont worry .. better not claim it this year .. you will still have 2 chances in 2012 and 2013

Manish

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48 Rajeev January 16, 2012 at 12:33 pm

As explained above by you that Block years for LTA is calander year.
Can I claim two journey in one finance year but different calander year?

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49 Manish Chauhan January 18, 2012 at 1:37 pm

Rajeev

Yes .. you can claim it twice , but those shouldl be two different financial years

Manish

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50 Rajeev January 18, 2012 at 2:24 pm

Dear Mansih,
But my case is different calender year and one finance year.
I claimed in April 2011 and now i want to claim again in Feb 2012.

Regards

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51 Manish Chauhan January 18, 2012 at 6:39 pm

Rajeev

I dont think that would be possible

Manish

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52 Rajeev January 18, 2012 at 10:17 am

I am waiting for reply! on my comment “Rajeev January 16, 2012 at 12:33 pm”

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53 Saurav Sinha January 19, 2012 at 5:30 pm

Hi All,
I have 1 confusion, as to whwther the link between my travels have to be correct for submitting LTA claims? Say I travelled from A to B to C to D to E and back to A via F route & do not have a proof (either ticket or private taxi hire bills) for 1 of the links (say C to D), then will it be a problem/illegal on my part?

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54 Saurav Sinha January 19, 2012 at 6:12 pm

Heres the detail.

Recently, I travelled from Banka to Patna (via Train), Patna to Ahmedabad (via flight), Ahmedabad to Jamnagar (via train), Jamnagar to Vadodara (via my car), Vadodara to Gulbarga & back to Vadodara (via private-bus service of tour operator), Vadodara to Jamnagar (via my car), Jamnagar to Ahmedabad (via train), Ahmedabad to Delhi (via flight), Delhi to Patna (via train) & Patna to Banka (via train).

Now I am about to claim LTA for the above travels, I dont have any ticket/bill for the leg of journey from Jamnagar to Vadodara & Vadodara to Jamnagar which I did with my car. So while producing tickets, this link will not show-up. Is this ok/legal?

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55 sukhwant singh gandhi February 7, 2012 at 5:23 pm

going for Himachal tour on a rental car for 7 days with family. can i claim 45000 as taxi bill for LTA. Travel from Delhi to chandiarh by Train and then from chandigarh to Himachal by Taxi. Taxi Bill will be approx 45000

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56 Manish Chauhan February 7, 2012 at 9:24 pm

No , taxi bill can not be used like that

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57 vinay sharma February 8, 2012 at 7:45 pm

sir, main retired up gvt. employee hu. medical reimburshment ek financial year me kitni baar liya ja sakta hai aur kitne amount ki limit tak, kripya sir detail me bataiyega ?

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58 Manish Chauhan February 8, 2012 at 9:29 pm

Vinay

You can take it upto 15,000 , and take many times ,but the total has to be upto 15,000 .. better that you take it only once in a year .. collect all the bills and get reimbursements once

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59 Darshan February 21, 2012 at 1:34 pm

Hi,
Would request you to please guide me in this confusion.

Can i claim LTA exemption in the next FY , ? If i travel in March 2012, can i claim LTA Exemption for the same in the next FY – 2012-13? I understand it is in the same block of years and hence would like to know if i can claim the tax exemption for this in the next FY?

Please help me in this confusion .
REgards,
Darshan.

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60 Manish Chauhan February 21, 2012 at 3:28 pm

I think you can do that .. better check with your company office only

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61 Sadanand March 11, 2012 at 5:09 pm

Hi Manish,
Does there is any rule for number leaves (Those many days employee should be on leave) for claiming LTA? I heard from my employer that number of days should be as Minimum 5 DAYS in order to claim for LTA….. Please suggest
Thanks,
Sadanand

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62 Manish Chauhan March 11, 2012 at 6:16 pm

Sadanand

It can depend from company to company , but yes 5 days is standard !

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63 Anjali March 20, 2012 at 12:53 pm

Can we claim LTA exemption directly from the tax authorities? i.e. if my employer provides no such breakup in salary?

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64 Manish Chauhan March 20, 2012 at 6:59 pm

Anjali

No , you cant claim LTA if your employer does not provide it as breakup.

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65 kuldeep sharma July 7, 2012 at 7:16 pm

dear sir
mene abi ek pharma company join ki hai 6 month before. meri salary slip m LTA deduction hota h. but muje nhi pta ki m kaise kya krna h. muje ye paisa vapas milega ya muje travel krna padga. i dont know so please tell me LTA kya hota hai aur eska utlises kaise kar sakta hu. please……………

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66 Manish Chauhan July 9, 2012 at 9:08 am

Kuldeep

Note that LTA is a benefit you get , You dont need to travel to get the money , you will get it anyways .. just that if you travel , you dont have to pay the tax on that much amount . So if your LTA is 15,000 per year and you are in 20% bracket , so you can save 20% of 15,000 by travelling , thats Rs 3,000

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67 s. mahajan July 26, 2012 at 1:00 pm

I have not submitted bills for medical reimbursement to my employer, and received salary as a taxable component. Can I claim the same while filing my tax returns?

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68 Manish Chauhan July 26, 2012 at 9:44 pm

Yes you can do tht

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69 s. mahajan July 27, 2012 at 3:38 pm

Thanks very much for the prompt response. Please help me with a couple of more queries.
1. Can I claim deduction for interest paid for Pre-Emi instalments for my second house currently under construction?
2. Can I claim the home registeration charges which I had paid in 2009 for my second house under construction?

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70 Manish Chauhan July 28, 2012 at 7:13 pm

1. No . but you will be able to claim it later in 5 yrs
2. Not now , it can be claimed only in the same year !

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71 Pragnesh Patel July 26, 2012 at 4:56 pm

Dear All,
I have been engaged with HR field since last couple of years& i am more than just confused with the whole concept of LTA, kindly let me know if i have mentioned LTA in salary ( CTC ) Break up, does it mean that employee would claim it? should i deduct the same from their salary every month? is it compulsory for any organization to pay LTA?
i am very much confused with this, please sort out the same & help me to clear the doubts by sending the detail on the above mentioned mail address.
Eager to receive your reply…………..

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72 Manish Chauhan July 26, 2012 at 9:09 pm

LTA is something an employer can choose to give, its not compulsory . LTA is just a way of labeling some part of money . Like if you want to pay someone 5 lacs a year , one option is you pay him 5 lacs in a year and dont do anything else .

the other option is call 50k as LTA and rest 4.5 lacs as salary , now in this case , for employer there will be no change . Note that you will have to pay LTA at the end of the year . Now for employee , if he choose to claim LTA (if he travels) , then he can claim tax benefit on the amount he gets as LTA (he will anyways get it) ,so his taxation will be lower, but if he does not claim LTA, then he will pay tax on LTA part also , but he will get the LTA anyways !

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73 Pragnesh Patel July 27, 2012 at 9:53 am

Respected sir,
Let me ask you something more about LTA. say for an instance, if LTA is shown in CTC break up, then the amount to be exempted under it act 1961 would be confined up to the amount shown in CTC break up or could it be more than that? if any employee goes for LTA & submit the documents required, now please tell me sir whether an employer needs to pay him the same or he could neglect by saying that its part of your CTC, it is already being paid to you every month, can he say that? or is it mandatory for an employer to pay him LTA along with the amount shown in CTC break up? in short, is LTA to be paid in addition to amount shown in CTC ? or it is included in break up so all that an employee needs to do is just submit all the docs and get it compensated under it act?
please help me to remove my doubts….

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74 Manish Chauhan July 28, 2012 at 8:44 pm

You will pay whatever is shown in CTC only . The only thing is that if he produces the bills for LTA , then he will save the tax amount on that and being an employer you will have to adjust it with the TDS cut and paid to govt !

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75 Pragnesh Patel July 26, 2012 at 4:58 pm

Respected sir,
kindly clear my doubts regarding LTA concept.

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76 Pragnesh Patel July 27, 2012 at 9:46 am

Respected sir,
i am more then satisfied now with your prompt instinct, its really matter of an astonishment that some one is always ready to help us in sorting out the queries. A special thanks to you sir………….

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77 Manish Chauhan July 28, 2012 at 8:46 pm

Welcome !

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78 Arunashis August 22, 2012 at 5:08 pm

Hello,

I had a travel on december,2011. I did not claim LTA since 2010. In my company LTA amount is carried forward. Can I claim the amount for that travel in december, 2011 now?? Will it be free of tax since I have travelled in last calender year (2011) and claiming it in on 2012-13 financial year?

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79 Manish Chauhan August 22, 2012 at 6:12 pm

It happens in a block of 4 yr, a company cant make its own rule , you cant claim a LTA which happened last year and you didnt claim it that time !

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80 Bhavani September 18, 2012 at 2:04 am

i have a doubt, where LTA is a part of my salary component, will i get that in hand every month, and then at the period of taxation, just to reduce our tax liability we need to show proof for travel explense? or LTA will not be given in our hand till we show the proof every year?

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81 Manish Chauhan September 18, 2012 at 9:35 am

Its not like that . Let me explain it to you.

LTA is part of your salary , you will get it in your hand anyways . All you can benefit is , you can save the tax on that much amount or not save it .

1. You can tell your company FInance department if you want them to just cut the tax and give you back the remaining every month
2. The next option is to tell them that by the year end, you will product the bills for travel and take back the amount at the end of the year without tax being cut, which one you want is your choice.

Manish

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82 hussain shaikh September 20, 2012 at 2:43 pm

Hi Manish,

I have query, can i claim the medical bill dated 01/10/2010 for this period.

Regards,

Hussain Shaikh

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83 Shawn September 30, 2012 at 12:28 pm

Hello Manish,

I recently joined a Co. and in my Payslip they have mentioned about LTA @ 15000 PA. They have mentioned – “Towards Leave Travel Allowance payable annually on completion of six months from date of joining”.

Does that mean that I will receive the complete amount of 15000.00(taxed) at the end of 1 year ?

Can I get this amount on a monthly basis after tax deduction ?

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84 Manish Chauhan October 2, 2012 at 2:47 pm

Shawn

Yes, you will get it at the end of the year , if you give them the travel slips and proof , you will not have to pay tax and will get full 15k , only for 2 yrs out of 4 .

You can also tell them to give you that money on monthly basis !

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85 Shawn October 4, 2012 at 7:22 am

“”Shawn
Yes, you will get it at the end of the year , if you give them the travel slips and proof , you will not have to pay tax and will get full 15k , only for 2 yrs out of 4 .
You can also tell them to give you that money on monthly basis !”‘

Thanks Manish – Only for 2 Years out of 4 ? I am little confused. Would be able to explain that ?

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86 Manish Chauhan October 4, 2012 at 5:50 pm

Shawn

LTA can be claimed in any 2 yrs out of 4 , thats how it works, read this http://www.jagoinvestor.com/2009/02/lta-and-medial-reimbursements.html

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87 Mehul October 3, 2012 at 5:41 pm

Hi Manish,
First of all thanks a lot for clearing so many doubts proactively! Appreciate that!
I also had a doubt.. I am planning a visit to my relatives later this year. I shall be travelling from say Hyderabad to Bhilai. Now since there is no airport at Bhilai, I shall travel by air to Raipur and take a cab. My parents shall join me at Raipur airport and we shall travel together to Bhilai. During return travel, my parents shall accompany me to Hyderabad. My dad is working where as mom is retired. Some questions:
1. Can I claim LTA for entire sector or shall govt treat this as 4 sectors i.e. HYD-Raipur, Raipur-Bhilai and back?
2. Can I show the return travel expenses for both my parents from Bhilai to Hyderabad? Or is it valid only for my mom – who will be treated as a dependent?
3. Will the treatment for Bhilai to Raipur and back be on the spend I incur for cab or will this be rounded to 1st class AC fares?
4. Can I claim internal travel in Bhilai (say by Cab) as a part of LTA?

Thanks in advance :)

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88 Manish Chauhan October 4, 2012 at 6:11 pm

Mehul

You can claim for your dad and mom both , there is no clause of dependency in LTA .

Also you can claim it for the full journey for air + train . I once travelled from Bangalore to delhi by air and then by train to varanasi and was back in same route , my company accepted the full thing

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89 Mehul October 4, 2012 at 10:36 pm

Thanks Manish.. I assume you already observed that my parents point of departure is not same as mine. We are just returning together. I hope that shouldn’t be a problem.

Do they consider internal travel say in Bhilai under LTA?

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90 Manish Chauhan October 9, 2012 at 12:11 pm

I think that will be the problem , you should be part of the full travel to claim LTA

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91 Abhijit October 8, 2012 at 3:50 pm

Hi Manish,

Just curious to know if I can claim LTA with the bills received from the package tour operators.
I am planning to send my parents for a trip to Nepal & it will be the best thing if I can claim the expenses with my LTA facility.

Documentary bills will be available from the tour operator.

Please let me know….

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92 Manish Chauhan October 8, 2012 at 9:05 pm

But you cant claim LTA if you are not part of the travel , I dont think you can claim the full amount in LTA like that, it only covers the travel part of expenses, so it will get complicated !

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93 Shefali December 5, 2012 at 11:53 am

Hi,
I want to know about Professional Tax & how much is to be deducted.

Please reply.

Regards
Shefali

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94 Manish Chauhan December 11, 2012 at 4:07 pm

then you must open a thread with our forum to ask that – http://www.jagoinvestor.com/forum/

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95 Reghunath January 12, 2013 at 3:29 pm

What happens for medical reimbursement, if have worked in two companies in same financial year in India and had not submitted bills for medical reimbursement in the first company..Can I submit bills for whole financial year in the second company or Do I need to claim back from the IT department during IT Returns filing..

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96 Manish Chauhan January 14, 2013 at 2:30 pm

Yes you need to claim it from IT department directly

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97 Rishi February 19, 2014 at 1:11 pm

Hello Mr Manish,

I have worked in 2 companies in the same financial year.
I have not submitted the medical bills in my 1st company.
I have submitted the medical bills in my 2nd company for re-imbursemnt.

But, my 2nd company says that it will be re-imbursed on Pro-Rata basis.
In case this is correct, do I need to submit the original medical bills along-with my IT return for claiming the exemption ?

Regards,
Rishi

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98 Manish Chauhan February 21, 2014 at 10:39 am

Hi Rishi

Can you open this question on our forum please – http://www.jagoinvestor.com/forum

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99 Ajay Kumar Tiwari January 15, 2013 at 2:39 pm

Hi Manish,

I am working in Software Company Since July 28, 2006.

1. In First Company – July, 2006 to March, 2010
2. In Second Company – March, 2010 to October, 2010
3. In third Company – October, 2010 to June, 2012
4. In forth Company – June, 2012 to Present.

But I have not used the LTA (not claimed) and did not get the LTA amount (after tax) in my account.

Please let me know If I can claim and get amount.

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100 vineet agarwal January 17, 2013 at 9:16 pm

I had traveled in the month of March 2012 but could not claim LTA in FY 2011-12 (April 2011 – March 2012) as we have to submit all tax proofs with the Co. by January end.
Can I claim LTA for travel of March 2012 in FY 2012-13 ? If not, then how can I claim LTA for travel made in FEB or MARCH as my Co. takes all proofs by January end and works on FY and not Calender year.

Regards

Vineet

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101 Manish Chauhan January 18, 2013 at 9:22 am

Yes you can claim it , but now you will have to do that directly in the tax return which you will file. Did you file your returns already ? If yes, then either you will have to revise file it or forget it .

Manish

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102 Manish Chauhan January 18, 2013 at 2:28 pm

You cant claim it for previous years now !

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103 Sameer Armaan January 22, 2013 at 5:51 pm

Hi Manish,

My current CTC is Rs. 617000, is it advisable to opt for LTA and Medical reimbursement as ”Payroll” or ”Reimbursement? I am planning to take a home loan in future and I want my salary to look on the higher side for a better loan eligibility.

Also what are various options available for me to avail tax benefits ?

Please , Please advise.

Thanks and Regards,
Sameer

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104 Manish Chauhan January 22, 2013 at 5:55 pm

How does it matter . .what matters is your Yearly income or monthly .. If its monthly take home , then better put an option which cuts the tax and gives back the rest to you each month . Not sure what it is called

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105 Vishal January 23, 2013 at 12:46 pm

Manish,
If we do not claim LTA at end of financial year, lets say in FEB, then can we get any amount in March salary from organization after tax deduction on it?

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106 Manish Chauhan January 24, 2013 at 5:17 pm

Yes, if you do not claim LTA, then you will get the money after tax anyways

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107 Yogesh January 25, 2013 at 3:04 pm

Dear Manish,

I want to clarify that Whether i don’t submit the medical bill to my company for reimbursement, can i still claim exemption for medical reimbursement of rs. 15000/-

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108 Manish Chauhan January 30, 2013 at 5:31 pm

If you dont submit :) .. then how will you claim it ?

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109 sai February 7, 2013 at 10:49 am

Hello Manish,

can i submit my or my dependents health insurance policy to claim this 15000/-.

i have already submitted 20000/- bills in 80D (senior citizen).

still i have 5000 extra policy bill with me, can i submit this bill to claim medical reimbursement?

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110 Abhijit February 13, 2013 at 11:42 am

Hi All,

It is mid of Feb & now I need to claim LTA which is important to save taxes.

As per the info with me & my past experience with the company I work in.
1) Company is not asking for tickets unless it is air travel. In case of Train travel they never asked for the tickets. Private hired vehicles are not allowed though.
2) I can claim the allowance of LTA for 2012 & 2013 both at the same time which will be non taxable considering I was on Leave for 5 days in Feb’13.
3) LTA claim should be submitted within 15 days from the last day of the leave.
4)Once submitted I will receive the amount equal to the travel expenses as non-taxable however if the expenses incurred is less than that of the LTA allowance then the difference will be taxable.

I would like to hear from you if anything wrong in the above info?

Thnx

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111 Abhijit February 16, 2013 at 8:12 pm

Hi All,

It is mid of Feb & now I need to claim LTA which is important to save taxes.

As per the info with me & my past experience with the company I work in.
1) Company is not asking for tickets unless it is air travel. In case of Train travel they never asked for the tickets. Private hired vehicles are not allowed though.
2) I can claim the allowance of LTA for 2012 & 2013 both at the same time which will be non taxable considering I was on Leave for 5 days in Feb’13.
3) LTA claim should be submitted within 15 days from the last day of the leave.
4)Once submitted I will receive the amount equal to the travel expenses as non-taxable however if the expenses incurred is less than that of the LTA allowance then the difference will be taxable.
5) If X has not claimed LTA say in 2012 he can claim the LTA for both 2012 & 2013 at a time in 2013 tax free. Only thing is you should be able to exaust the amount of both the years in one go. Ex. LTA of 2012+LTA of 2013 say 20000+25000=45000

I would like to hear from you if anything wrong in the above info?

Thnx

Reply

112 Manish Chauhan February 18, 2013 at 12:58 pm

Yes most of the points are correct .. however something are decided at company level . Like a lot of companies allow the hiring of private vehicle also ! . Share what exactly issue you are facing ?

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113 Reema February 28, 2013 at 1:26 am

If I had allocated Rs 15k for medical reimbursement but was able to submit medical bills for Rs 8000 only , what happens to the remaining Rs 7000? Will it get credited to my March salary after tax deductions or will it be carried forward for the next year?

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114 Manish Chauhan March 1, 2013 at 8:38 pm

You will get it after tax deducations !

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115 Anaam March 8, 2013 at 12:11 pm

I have changed my company in January. I have claimed medical bills of 15K in my previous company and also the Car Maintenance of 21600 in my previous company.

In my new company, can I claim the same again ?

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116 vikash raaj March 12, 2013 at 12:09 pm

can i claim 1,00,000 as LTA bill for next financial year (13-14).

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117 Manish Chauhan March 13, 2013 at 11:24 am

NO , its limited to an amount like 25k per year or 50k per year !

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118 vikash raaj April 29, 2013 at 10:39 am

Hi,
when I spoke to the finance team in my company, they told we can claim as per the amount we fix in LTA allowance. it is dynamic for us and we can fix as per out requirement.

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119 Manish Chauhan May 6, 2013 at 6:20 pm

But there has to be a upper limit . right ?

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120 Amit March 14, 2013 at 1:04 pm

I have a question regarding medical reimbursement.
– What kind of bills are covered in this ?
Is it only applicable on chemist bills ?
Does it cover doctors check-up fees ?
Bills from pathology lab ?

Is there a link to government website which states that all these kind of bills will be considered valid.

Need this information urgently. Thanks.

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121 Manish Chauhan March 19, 2013 at 12:14 pm

Amit

yes all these bills should be covered !

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122 Anshu March 15, 2013 at 5:27 pm

Hi Manish, Your blog is very informative, thanks. I have a query, one of my employee says that””Medical reimbursement of 15,000 is an annual component. This is a reimbursement and not an allowance. So it should not be pro-rated.” He joined our company in Jan’13 and says – he has not claimed any amount from this in his previous organization. So as per tax rules he should be eligible for complete 15,000 amount and it should not be prorated to his duration in company. Please confirm if he is correct.

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123 Manish Chauhan March 19, 2013 at 11:38 am

I think that is not correct .. even though I am not sure .. its something which is a yearly component, so what time a person has worked should matter. Better check this out on our forum – http://www.jagoinvestor.com/forum/

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124 Sainnni March 24, 2013 at 10:55 pm

Hi,

I have been through your informative articles on LTA and found that if one has an LTA salary component, if the LTA is not claimed and if the employee wants it as an allowance in cash form, this amount after tax deduction will be added to his salary.

In this regard, is the whole amount after taxation is added to salary and given to employee or is it that the employer organization can retain some/whole part of it(if LTA forms a part of CTC).

Also please let me know if this rule has to be same across all organizations or varies as per industry. I am concerned about the IT companies here.

Also please let me know of any government references/laws in this regard.

Please please solve my query

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125 Manish Chauhan March 27, 2013 at 12:07 pm

No , its same every where , you will get the LTA money after the company deducts the tax .

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126 Prashanth April 4, 2013 at 6:40 pm

Hi Manish,

I am in a unique situation.
I want to claim for medical expenses (occurred during previous financial year) in current financial year.
Please note I have not claimed for medical expenses during previous financial year.
But, our accountant says this is not possible.
Would like to have your opinion on this please!

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127 Manish Chauhan April 6, 2013 at 11:40 am

Yes, its not possible , you have to claim for each year on time ,else its gone ! , btw , you get the money after tax, all you save is the TAX amount

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128 rahual April 5, 2013 at 10:54 am

Hi, I had spent a Rs. 16600/- rupee on my mother osteoporosis treatment on 26th march 2013. for the current financial year i had already submitted Rs.15000/- medical bills to my company.
I would like to know whether it possible to use this Rs. 16600/- Medical bill in next financial year.
Please reply.

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129 Manish Chauhan April 6, 2013 at 11:21 am

No , only bills for that particular financial year can be submitted .

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130 Chetan Ambi May 10, 2013 at 11:01 pm

Very detailed and informative article. Only after reading this article I understood about LTA clearly. Manish, you are doing one hell of a job educating the mass. Long live Manish, Long live jagoinvestor :)…

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131 Manish Chauhan May 18, 2013 at 2:19 pm

Thanks Chetan :)

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132 pranjal singh June 16, 2013 at 9:49 pm

Hi,

I have recently switched my job and there was a gap of around 10 days between me resigning from the previous employer and joining the current employer, and during this gap I have traveled to my home town.
What I would like to clarify that can I submit this trip bills for LTA reimbursement with my current employer as though the trip is made in this year, I don’t have any paid leaves against those travel dates as I was not the part of the current organization.

However I believe that since this is a privilege which one can exercise during a particular year, I am very much eligible to reimburse the LTA for this trip as well, though it would be pro-rata based for sure from current employer.

Thanks !

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133 Manish Chauhan June 22, 2013 at 9:49 am

No you cant. it has to be within your employment period and you should have taken proper leaves for this

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134 Rahul August 23, 2013 at 12:24 pm

Hi,

I’ve made a trip in March 2013. For this trip I’ve not claimed LTA in FY 2012-13.
Can I claim LTA for this March 2013 bills, in FY 2013-14?

Regards,
Rahul

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135 Manish Chauhan August 29, 2013 at 2:46 pm

No you cant do that

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136 sandra September 15, 2013 at 7:23 pm

Hi,

If I want to claim LTA, is it necessary that I incur the expenses? can a travel paid by my husband and I have travelled along with him be claimed by me? since his LTA is lower than mine.

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137 Manish Chauhan September 17, 2013 at 7:01 pm

You need to travel and that too on paid leave. But you need it just to save tax on LTA amount. If you do not travel and claim it, you get LTA money after tax deduction !

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138 Nagendra kamath September 16, 2013 at 5:11 pm

Hi Manish,
Our company clubs our LTA across every 2 years and credits the LTA amount once every two year in the month of Jan if not claimed . I did a travel in Jan 2013 and did not submit the bill , as i was hoping that i may travel again ( which may cost me more )

Do you think there is problem if i submit the bill now ( Sep 2013) . The company has my two years LTA amount with them .

Is it proper for my company to say that , i must have submitted the bills by March 2013 , even when they have my entire LTA amount for last two years ?

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139 Manish Chauhan September 17, 2013 at 6:48 pm

First company should ideally not do that. But even if they are doing it, you are suppose to give the documents each year !

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140 Meena September 16, 2013 at 7:09 pm

I worked with an organization for 4 years between 2008 and 2012 and I had never claimed for LTA. I am relieved from the organization and currently employed elsewhere. Can I have my previous employer give me the LTA claims that I was eligible for?

Please help.
Thanks in advance.

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141 Manish Chauhan September 17, 2013 at 6:46 pm

No you are not eligible for old LTA , its gone !

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142 kapil October 16, 2013 at 2:43 pm

Hello,
I have planned for Rs .1250 medical reimbursement per month. If I am not able to submit the bills every month, can I sumbit all the bills(15k) at the time filing my tax return? Am I able to get tax benifit on those bills? without planning in flexi benifit tool, am I eligible for claiming the medical reimbursement at the time of filing?

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143 Manish Chauhan October 18, 2013 at 9:00 pm

You can submit these at the end of the year , you will get back all your money in one shot .

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144 Sarthak October 26, 2013 at 12:44 am

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 ?

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145 Manish Chauhan October 26, 2013 at 9:11 am

Yes Sarthak . It will be paid after paying tax :)

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146 Mujahid Kareem December 13, 2013 at 5:30 pm

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?

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147 Manish Chauhan December 14, 2013 at 10:12 am

LTA works in 4 yrs block . The current block was 2010-2013 . So Apr 2013 is now over. Means anything which is not claimed for that period is GONE .

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148 Mujahid Kareem December 14, 2013 at 12:08 pm

Thanks Manish. But the employer can reimburse the unclaimed LTA to the employee and in this case it becomes taxable correct?

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149 Manish Chauhan December 18, 2013 at 5:13 pm

Correct, thats how it works!

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150 Mayank Negi January 24, 2014 at 5:43 pm

I have paid the ticket partially using air miles. Can I claim LTA for the rest of the amount paid is cash.

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151 Manish Chauhan January 30, 2014 at 6:49 pm

I think yes, do you have the proper bill for that and the boarding pass !

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152 Mahesh March 12, 2014 at 1:44 pm

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).

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153 Manish Chauhan March 12, 2014 at 4:15 pm

It will be block 10-13 only , because its till 2013-2014 , and Jan 2013 comes into 2013-2014 !

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154 Mahesh March 12, 2014 at 4:43 pm

Thanks Manish, but my query pertains to Jan 14.

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155 Manish Chauhan March 12, 2014 at 4:45 pm

Err .. my mistake .. in that case it will come under 14-17 slab

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156 Akshay April 14, 2014 at 1:16 pm

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

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157 Manish Chauhan April 21, 2014 at 3:28 pm

You can always get your LTA money after deducting tax !

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158 Deepali June 13, 2014 at 4:12 pm

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 !

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159 Manish Chauhan July 5, 2014 at 4:18 pm

Deepali

I think you can try for Vaccinations, because its like a treatment . But not milk powder and Contact lenses

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160 Vijay HS July 9, 2014 at 12:06 pm

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

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161 Manish Chauhan September 21, 2014 at 10:11 pm

Hmm.. As far as I understand, its not an exemption from income tax department , its a employer level exemption , so I dont think you can now claim it

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162 Pankaj Deshpande July 29, 2014 at 3:01 pm

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

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163 Manish Chauhan September 20, 2014 at 7:07 pm

No you cant claim past LTA benefits, its gone now !

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164 Manish Sharma September 2, 2014 at 11:21 am

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

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165 Manish Chauhan September 20, 2014 at 3:53 pm

This can only be confirmed from your company

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166 Vineet October 12, 2014 at 3:35 pm

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!

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167 Manish Chauhan October 16, 2014 at 4:19 pm

I dont think so

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168 Jagdish Panwar December 12, 2014 at 3:20 pm

Hi Manish,
I have taken LTA during mid of March’2014. Since my company took all the savings and LTA related documents in Jan-14 and already processed my salary for month Mar-14, i was not able to submit my LTA documents. Can i submit those documents now and take the LTA benefit in this F.Y.

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169 Jagdish Panwar December 12, 2014 at 3:35 pm

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.?

Reply

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