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Tax exemption is based on only Original Bills (photocopies are not allowed). 2. The bills should be in the name of employee, spouse, dependant children and dependant parents.
3. All Medical Expenses including expenses on dental care and eye care can be
claimed for tax exemption (expenses on general items like Cosmetics, Baby Foods, Horlicks & Personal products etc., are not eligible for exemption) 4. Expenses incurred for spectacles / contact lens are also exempted provided supported by Doctor’s prescription. 5. Premium towards hospitalization insurance coverage (Mediclaim Insurance) for self and dependants are eligible for exemption provided the same has not been claimed under section 80 D of the Income Tax in tax computation.
6. The bills should be for the current financial year (2011-12) i.e. from April ’11
to March ’12. 7. If any employee has joined during the middle of the financial year, then he/she should submit medical bills only on or after the Date of Joining (DOJ). LEAVE TRAVEL ASSISTANCE/ALLOWANCE (LTA)
Current Block is 2010 – 2013.
Calendar Year : January to December
Leave Travel Assistance is paid as part of the compensation structure of an employee under the prevailing HR policies of the employer. PURPOSE The purpose of LTA is to provide a reasonable assistance to all the employees during vacation. ELIGIBILITY Employees are eligible to receive LTA as per the prevailing HR policies of the company. PROVISIONS OF THE INCOME TAX ACT 1961 RELATING TO LTA Section 10(5) read with Rule 2 B of the Act governs the provisions. 1. LTA is received by, or, due to an employee (whether an Indian citizen or not) for himself and his family (spouse, children and parents, brothers and sisters of the individual wholly or mainly dependant on the individual) 2. LTA is received for journey to any place in India during leave or on retirement or termination of service. Rule 2 B Amount of exemption Exemption is limited to the amount of expenses actually incurred by the employee for the purposes of travel. Thus employee is required to keep an account of the actual expenditure incurred per person in the family and furnish evidence of such
etc. 1. then original travel bills / cab bills clearly mentioning the place of travel. 3. 2. Travel by Rail: An amount not exceeding the Air-conditioned First Class Rail fare by the shortest route to the place of destination. 3. The following are the documents eligible for Tax Exemption 1.expenditure. 2. If no recognized public transport system exists – Air-conditioned First class rail fare for the distance of the journey by the shortest route. Multiple travels are not allowed for tax exemption 2. no. if any. of persons traveled with kms and trip chart. For the purpose of exemption. The rule shall not apply in respect of children born before 1st October 1998 and in respect of multiple births after one child. If the travel is by any other mode. Where such travel concession or assistance is not availed of by the individual during any such block of 4 calendar years. The current Block is 2010-2013 Number of Children for granting exemption 1. the following expenditure is considered. Exemption is not available to more than 2 surviving children if they are born on or after 1st October 1998. Only Single Round Trip is allowed for tax exemption 3. first availed by the individual during the first calendar year of the immediately succeeding block of 4 calendar years shall be eligible for exemption. exemption will not be allowed in respect of leave travel concession received by the employer. 2. Train ticket original or photocopy with no. Foreign Travels are not eligible for tax exemption Block of years 1. If no expenditure is incurred. as if the journey has been performed by rail. . an amount in respect of the value of LTA. Flight ticket with boarding pass for economy class 2. Travel by any other mode to areas not connected by rail: a. If a recognized public transport system exists – First Class or deluxe class fare on such transport by the shortest route to the destination b. Travel by Air: An amount not exceeding the Economy Class fare of the National Carrier by the shortest route to the place of destination. Exemption will be available to an individual in respect of 2 journeys performed in a Block of 4 calendar years commencing from the calendar year 1986. of persons traveled – maximum upto 1st class a/c fare 3. Note: 1.