In my present employment, one component of our salary named "LTA/MED". If anyone suggest me this component is eligible for exemption under Income Tax Act?
Regards,
Sathish
Sathishkumar Ramamoorthy (MD / CEO) (35 Points)
25 January 2012In my present employment, one component of our salary named "LTA/MED". If anyone suggest me this component is eligible for exemption under Income Tax Act?
Regards,
Sathish
Vignesh Killur
(Articled Assistant)
(1671 Points)
Replied 26 January 2012
Dear Sir
MEDICAL ALLOWANCE:
Medical Allowance is fully taxable irrespective of the amount paid or whether the employee spends it for his medical expenses or not.
But the employee can avail the benifit of Medical Reimbursement. THe difference between them is that Medical allowance is a fixed allowance paid every month irrespective of need & Medical Reimbursement is paid as and when needed to employees on producing medical bills.
Benifit is available upto Rs. 15,000 p.a for medical facilities availed by the Employee in private Hospital.
In Govt Hospitals, hospitals maintanied by employer & Hospitals approved by Chief Commisioner there is no monetary ceiling.
LEAVE TRAVEL:
Leave travel concession/Allowance is extended by an employer to an employee for going anywhere in India along with his family is exempt to the extent mentioned below:
Where the Journey is performed by Air: Amount of Economy class air fare of the national carrier by the shortest route OR the amount spent, whichever is less.
Where the journey is performed by rail: Amount of air conditioned first class rail fare by the shortest route or the amount spent, whichever is less
Where the places of origin of journey and destination are connected by rail and journey is performed by any other mode of transport: Amount of air conditioned first class rail fare by the shortest route or the amount spent whichever is less
ONLY 2 JOURNEYS IN A BLOCK OF 4 YEARS I EXEMPT. THE PRESENT BLOCK STARTS FROM 1 JAN 2010 TO 31 DEC 2013
Regards,
mohit pathak
(Learner)
(396 Points)
Replied 27 January 2012
agree with Vignesh......
In short \
Medical allowance if Fully Taxable whereas Medical Reimbursement is Exempt,as discribed above...
LTA is allowed on actual expense bases means exp is only allowed when incurred but with some conditions...as discribed by Mr Vignesh
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