Most salaried people believe that record keeping and maintaining bills is required only for those who carry on a business or profession. However, there are several areas where they too need to submit the necessary details to avail of employment benefits or they end up being the loser in terms of reimbursement of benefits not coming through. Here are some such areas to keep a specific watch on.
Reimbursement
A company reimburses several expenses for its employees. These are expenses that are incurred by the individual on behalf of their employers. An employee needs to submit bills to get or claim the amount. Some examples of employee reimbursement include telephone bills, conveyance and newspaper expenses. In all these cases it is important that the employee produces the required bills to support their claim otherwise this is not likely to be passed by the account department and the person might end up taking a hit on an amount that can be claimed from their employer.
Medical expenses
If an employee can submit the necessary medical bills for treatment or medicines purchased during a particular time period, he or she is entitled to a reimbursement of medical expenses to the limit of Rs 15,000. This amount is also tax free in their hands so there will not be any deduction when the amount is paid to them. Hence it is necessary to show original bills for which the amount has been spent otherwise, the amount will be taxed and then given to the employee. Keeping a record of these bills during the year ensure that the amount reimbursed remains tax-free.
Leave travel
Many companies also reimburse expenses incurred by an employee while travelling for a holiday with the family. Under the rules for leave travel allowance (LTA) the amount has to be claimed from the company. For two out of four years this amount can be claimed as tax-free provided the necessary conditions are fulfilled. Thus whenever the employee wants to claim an amount that is free of any taxes they need to submit the original tickets purchased to travel within India. This again requires that the right amount of records and bills are maintained and then submitted at the appropriate time.
Leave travel
Many companies also reimburse expenses incurred by an employee while travelling for a holiday with the family. Under the rules for leave travel allowance (LTA) the amount has to be claimed from the company. For two out of four years this amount can be claimed as tax-free provided the necessary conditions are fulfilled. Thus whenever the employee wants to claim an amount that is free of any taxes they need to submit the original tickets purchased to travel within India. This again requires that the right amount of records and bills are maintained and then submitted at the appropriate time.