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Lta and Medical Exemption

Former Member
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HI Gurus

I got an issue on LTA & Medical....MY client requirement is an employee can claim Medical as part of CTC.......EX : He can Claim medical 15,000....per year ..I maintained in 582 as 15,000 and the employee submitted bills of 10,000....this 10,000 amount i maintained in IT 0015 ...for 10,000 the exemption is working fine....My doubt lies here...still the employee should get paid 5000 by the employer and should be taxable according to law.

I am not sure where to maintain this remaining amount..i got a clue that we can maintain in IT0589( Individual Reimbursement ) ..but when i am creating it....ia m not getting any values in Wahetype field and ai tired to enter manually the wage type I am getting an error stating that " Wagetype xxxx is not part of the allowance grouping XXX ".....and in the same way i need to maintain LTA aswell

any help from your side

Thanks

Accepted Solutions (0)

Answers (4)

Answers (4)

Former Member
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bnbb

Former Member
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Hi,

Don't maintain the total eligible amount in IT0582 (i.e 15000/-), rather maintain the limit for Medical wagetype in table V_T7INT9 under column Exmt it, with respectiv tax code ( in case of medical is SMED).

Also maintian the entry in V_T7INA9 for this wagetype as Reimbursement.

Now, Whenever employee submits the bill (claims medical) maintain the claimed amount in IT0582 and pay the same through IT0015.

For the unclaimed amount out of 15000/-, pay through IT0015 and dont maintain IT0582 for the unclaimed amount.

System will check the IT0582, IT0015 and table V_T7INT9 for exemption amount. The least of these three will be exempted.

This is the best practice in your case.

Thanks

Syed

Former Member
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As Sikandar said, maintain V_t7inA9 table, hre, for your wage type give - Reimbursement.

Only then you will get ur wagetype in IT589.

Also maintain Tax codes in V_T7INT7 tables.

For exemptions, you can maintain amount in IT582.

The payments to employee towards MEdical and LTA are made thru Infotypes 14/15.

System by default takes the least of amount maintained in all these 3 infotypes for Exemption.

If you want any balance amount to be taxable, then maintain 10000 in exemption and pay 5000 thru IT 14/15, this amount will be taxable.

Regards

...Sadhu

sikindar_a
Active Contributor
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Check the allowance Grouping of that Employee in V_T7INA9 once

Former Member
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HI,

Employee is elegiable medical rs 15000/- but he submited bill of rs 10,000/- ok in this case you have give exemption in it 582 and you can pay 10,000 amount to employee throught the transaction code pc00_m40_remp and for balance payemnt you have to created one wage type in info type 15 and give them loge text i.e.taxable medical. is it ok

Subhedar Balwant

Former Member
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HI,

Employee is elegiable medical rs 15000/- but he submited bill of rs 10,000/- ok in this case you have give exemption in it 582 and you can pay 10,000 amount to employee throught the transaction code pc00_m40_remp and for balance payemnt you have to created one wage type in info type 15 and give them loge text i.e.taxable medical. is it ok

Subhedar Balwant