How to calulate LTA and medical exemption ?

suren 41
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I changed the company this year and hence have 2 form 16. I haven't shown my previous company income in my current company hence my current company hasn't deducted any tax.

I haven't submitted LTA ,medical bills in my previous company nor in current company.
Now i have consolidated this 2 form 16 and calculated tax. but have few doubts regarding LTA and medical bills exemption.

previous company duration - april 2011- dec 2011 current company - jan to march 2012

  1. LTA previous company 2000/month
    current company 4000/month
    april to dec - 2000*9 = 18000
    jan to march = 4000 * 3 = 12000
    total = 30000

    I travelled in aug 2011 cost = 20000
    how much should i deduct 18000 or 20000?

  2. medical bills
    medical previous company 1250/month
    current company 1250/month
    april 11to dec 11= 1250*9 = 11250 jan 12 to march 12= 1250 * 3 = 3750
    total = 15000
    but i have bills like
    april 2011 to dec 2011- 5000
    jan 12- march 12 = 6000
    How much should i deduct for medical exemption?

previous-income medical-bills job-change leave-travel-allowance form-16
1 Answers

Leave travel allowance and medical reimbursements are employer provided tax benefits. If not claimed with employer it should not be claimed while income tax return filing.

Whatever is the exemption for LTA and medical, it should have been shown in Form-16.

Pankaj Batra5212

I talked with people who file return(etaxmentor in my case) they provided me a form which has the option of LTA and medical bills option which are not mentioned in form 16. they told me that submit your payslip(both company), medical bills, LTA bills. they told also that income tax office may ask question later on then i need to show these bills at that time(original bills). Is it correct procedure?

suren•

Ultimately income tax return would be filed in forms provided by income tax department. None of these have fields for LTA and medical reimbursements. Can you please share form which you have so that we may also know same.

No document is accepted along with income tax return form so where to submit payslips, medical bills etc.

Only way out would be to compute your income tax after deducting these deductions and show less income in income tax return form. But it would then create a difference between form-16 and your statement in return form. This may raise doubts in assessing officer mind and he may raise further queries in your return to justify your case. It may then be difficult to prove why reimbursements were not taken with employer.

Pankaj Batra•

Can you provide your email id? I will send the document?

suren•
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