7/30/2019 Note on Reimbursement.doc

1/2

GUIDELINES FOR SUBMITTING CLAIMS

MEDICAL BILLS:1. 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 Doctors 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 DecemberLeave Travel Assistance is paid as part of the compensation structure of anemployee under the prevailing HR policies of the employer.

PURPOSEThe purpose of LTA is to provide a reasonable assistance to all the employees duringvacation.

ELIGIBILITYEmployees are eligible to receive LTA as per the prevailing HR policies of thecompany.

PROVISIONS OF THE INCOME TAX ACT 1961 RELATING TO LTASection 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 retirementor termination of service.

Rule 2 BAmount of exemptionExemption is limited to the amount of expenses actually incurred by the employeefor the purposes of travel. Thus employee is required to keep an account of theactual expenditure incurred per person in the family and furnish evidence of such

7/30/2019 Note on Reimbursement.doc

2/2

expenditure. If no expenditure is incurred, exemption will not be allowed in respect ofleave travel concession received by the employer.

For the purpose of exemption, the following expenditure is considered.1. Travel by Air: An amount not exceeding the Economy Class fare of the

National Carrier by the shortest route to the place of destination.

2. Travel by Rail: An amount not exceeding the Air-conditioned First Class Railfare by the shortest route to the place of destination.3. Travel by any other mode to areas not connected by rail:

a. If a recognized public transport system exists First Class or deluxeclass fare on such transport by the shortest route to the destination

b. If no recognized public transport system exists Air-conditioned Firstclass rail fare for the distance of the journey by the shortest route, as ifthe journey has been performed by rail.

The following are the documents eligible for Tax Exemption

1. Flight ticket with boarding pass for economy class

2. Train ticket original or photocopy with no. of persons traveled maximum

upto 1st

class a/c fare3. If the travel is by any other mode, then original travel bills / cab bills clearly

mentioning the place of travel, no. of persons traveled with kms and tripchart, etc.

Note:1. Multiple travels are not allowed for tax exemption2. Only Single Round Trip is allowed for tax exemption3. Foreign Travels are not eligible for tax exemption

Block of years1. Exemption will be available to an individual in respect of 2 journeys performed in aBlock of 4 calendar years commencing from the calendar year 1986.

2. Where such travel concession or assistance is not availed of by the individualduring any such block of 4 calendar years, an amount in respect of the value of LTA,if any, first availed by the individual during the first calendar year of the immediatelysucceeding block of 4 calendar years shall be eligible for exemption.

3. The current Block is 2010-2013Number of Children for granting exemption

1. Exemption is not available to more than 2 surviving children if they are born onor after 1st October 1998.

2. The rule shall not apply in respect of children born before 1st October1998 and in respect of multiple births after one child.