Greetings,
It will help the employee declare the expenses on the amount , submit the bill and receive tax deduction on it. Its a must component of compensation plan.
Please consider Sodexho coupon and car maintenance if you can . It will further reduce their tax burden.
From India, Mumbai
1859It will help the employee declare the expenses on the amount , submit the bill and receive tax deduction on it. Its a must component of compensation plan.
Please consider Sodexho coupon and car maintenance if you can . It will further reduce their tax burden.
From India, Mumbai
Hi Neha,
If Medical and LTA are paid as allowances per month, then they are of no use as all the payments which has been termed as allowance, is taxable. Instead of terming it as Allowance it should be called Medical and LTA Reimbursement, which can be given to employees on submission of bill and will be exempted from Tax.
Further Medical and LTA Reimbursement should be kept in Flexible Basket and should be left on employees to opt for. Purpose of giving Medical and LTA Reimbursement is Tax exemption. There can be some employees who's annual gross income (After all exemptions such as HRA, Conv, Other Investments) is non taxable, in that condition forceing Medical and LTA Reimbursement will unneccessarly reduce there net take home salary.
Rgds..Kumar Anand
HR - SAMSUNG
From Korea
If Medical and LTA are paid as allowances per month, then they are of no use as all the payments which has been termed as allowance, is taxable. Instead of terming it as Allowance it should be called Medical and LTA Reimbursement, which can be given to employees on submission of bill and will be exempted from Tax.
Further Medical and LTA Reimbursement should be kept in Flexible Basket and should be left on employees to opt for. Purpose of giving Medical and LTA Reimbursement is Tax exemption. There can be some employees who's annual gross income (After all exemptions such as HRA, Conv, Other Investments) is non taxable, in that condition forceing Medical and LTA Reimbursement will unneccessarly reduce there net take home salary.
Rgds..Kumar Anand
HR - SAMSUNG
From Korea
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Maharashtra Special allowance Notification July 14 to Dec 14.pdf
LTA (REDIFF).doc