LTA & Medical Under section 10

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 December 2010 In my salary component, we have to declare LTA & medical component initially so that the component is not payable in the monthly salary. It is payable when I submit proofs and get it reimbursed.

Now I have not declared this amount initially. which I have not declared initially. Can I get tax exemption on LTA & Medical now by showing proof to the company?

Or shall I declare this while filing income tax return?

Also I read some supereme court decision on LTA : No need to submit proof for LTA. Is it true? without proof what amount I can declare for LTA?

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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31 December 2010 Show to company, and get deduction in FORM 16A ( TDS certificate)

Querist : Anonymous

Querist : Anonymous (Querist)

31 December 2010 But I have taken that amount as taxable amount in monthly salary uptill now. How can I convert Taxable LTA & Medical into non taxable?

Querist : Anonymous

Querist : Anonymous (Querist)

31 December 2010 But I have taken that amount as taxable amount in monthly salary uptill now. How can I convert Taxable LTA & Medical into non taxable? Please reply.. it's urgent

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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03 August 2024 **Leave Travel Allowance (LTA) and Medical Reimbursements under Section 10**

### **1. LTA and Medical Reimbursement Tax Exemption:**

#### **A. Tax Exemption for LTA:**
1. **Initial Declaration and Reimbursement:**
- LTA is exempt under Section 10(5) of the Income Tax Act, but it must be claimed with proof. If you initially did not declare LTA and therefore did not receive the benefit during the salary cycle, you can still claim the exemption when filing your Income Tax Return (ITR).

2. **Proof Requirement:**
- As per current norms, proof of travel is generally required to claim LTA exemption. This includes travel tickets, bills, and other relevant documents.
- The Supreme Court ruling you mentioned might be specific to certain interpretations or jurisdictions, but generally, the requirement for proof remains in effect.

3. **Taxable LTA:**
- If you initially declared LTA as taxable, and now wish to convert it to non-taxable, you need to provide the necessary proofs to your employer to adjust your taxable income. If this isn’t possible within the salary cycle, you can claim the LTA exemption while filing your ITR.

#### **B. Tax Exemption for Medical Reimbursement:**
1. **Initial Declaration and Reimbursement:**
- Medical reimbursement under Section 10(16) is exempt up to a limit of ₹15,000 per annum. This exemption is available only if the expenses are actually incurred and not just declared.

2. **Claiming Exemption:**
- If you did not initially declare the medical reimbursement component, you can still provide proof to your employer and get it reimbursed tax-free. If you missed this during the financial year, you can claim it while filing your ITR under the appropriate section.

### **2. Adjusting Taxable LTA and Medical Reimbursements:**

1. **Adjusting with Employer:**
- If you have received taxable LTA and medical reimbursements in your salary, you can approach your employer with proof to correct the tax treatment. They may adjust your taxable income and provide revised Form 16 accordingly.

2. **Filing ITR:**
- If adjustments with the employer are not feasible, claim LTA and medical reimbursement exemptions while filing your ITR. Report the exempted amounts in the appropriate sections of your return and provide necessary proofs if requested by the Income Tax Department.

### **3. Important Points to Remember:**

1. **For LTA:**
- Ensure that the travel falls within the eligible block period.
- Keep all relevant documents (tickets, invoices) as proof.
- You can claim LTA exemption while filing your ITR even if you missed declaring it initially.

2. **For Medical Reimbursement:**
- Ensure the amount does not exceed the ₹15,000 exemption limit.
- Submit the proof of medical expenses to your employer or claim it while filing your ITR if not initially declared.

**In summary**, if you did not declare LTA and medical components initially, you can still claim the exemption by providing the required proof to your employer or while filing your ITR. Adjustments should be made as per the procedures outlined above.

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