Is LTA & Medical Allowances recommendable for a company to pay to its employees?
From India, Mumbai
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From India, Mumbai
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Greetings,
It will help the employee declare the expenses on the amount, submit the bill, and receive tax deduction on it. It's a must component of the compensation plan.
Please consider Sodexo coupons and car maintenance if you can. It will further reduce their tax burden.
From India, Mumbai
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1872It will help the employee declare the expenses on the amount, submit the bill, and receive tax deduction on it. It's a must component of the compensation plan.
Please consider Sodexo coupons and car maintenance if you can. It will further reduce their tax burden.
From India, Mumbai
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Dear All, please let me know........ Is LTA & Medical Allowances are eligible for all Company staffs or only for AM & Above. Reply Plzzzzz Regards Rakesh Kumar
From India, Bangalore
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From India, Bangalore
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Hi Neha,
If Medical and LTA are paid as allowances per month, then they are of no use as all the payments which have been termed as an allowance are taxable. Instead of terming it as an Allowance, it should be called Medical and LTA Reimbursement, which can be given to employees on submission of a bill and will be exempted from Tax.
Further, Medical and LTA Reimbursement should be kept in a Flexible Basket and should be left for employees to opt for. The purpose of giving Medical and LTA Reimbursement is Tax exemption. There can be some employees whose annual gross income (After all exemptions such as HRA, Conv, Other Investments) is nontaxable; in that condition, forcing Medical and LTA Reimbursement will unnecessarily reduce their net take-home salary.
Regards,
Kumar Anand HR - SAMSUNG
From Korea
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If Medical and LTA are paid as allowances per month, then they are of no use as all the payments which have been termed as an allowance are taxable. Instead of terming it as an Allowance, it should be called Medical and LTA Reimbursement, which can be given to employees on submission of a bill and will be exempted from Tax.
Further, Medical and LTA Reimbursement should be kept in a Flexible Basket and should be left for employees to opt for. The purpose of giving Medical and LTA Reimbursement is Tax exemption. There can be some employees whose annual gross income (After all exemptions such as HRA, Conv, Other Investments) is nontaxable; in that condition, forcing Medical and LTA Reimbursement will unnecessarily reduce their net take-home salary.
Regards,
Kumar Anand HR - SAMSUNG
From Korea
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