Clarification regarding taxability of Leave Travel Concession (LTC), Medical Reimbursement Claims etc. claims u/s 115BAC in the New Tax Regime

Download PDF Version

F.No.173/10/2025-ITA-I

Government of India / भारत सरकार

Ministry of Finance / वित्त मंत्रालय

Department of Revenue / राजस्व विभाग

Central Board of Direct Taxes / केन्द्रीय प्रत्यक्ष कर बोर्ड

हॉल संख्या 14049 एच, ए विंग, काव्य भवन - 1, नई दिल्ली

नई दिल्ली, दिनांक 23 जनवरी, 2026

कार्यालय ज्ञापन OFFICE MEMORANDUM

Sub: Clarification regarding taxability of Leave Travel Concession (LTC), Medical Reimbursement Claims etc. claims u/s 115BAC in the New Tax Regime - reg

Kindly refer to your OM No.G-26033/01/2026-Cash dated 12.01.2026 seeking clarification regarding Clarification regarding taxability of Leave Travel Concession (LTC), Medical Reimbursement Claims etc. claims u/s 115BAC in the New Tax Regime. In the matter, the undersigned is directed to say that as per the provisions provided in Section 10(5) of the Act (exemption for leave travel concession), Section 80 DD (deductions in respect of maintenance including medical treatment of a dependent who is a person with disability), Section 80 DDB (deductions in respect of medical treatment) is not available under the New Tax Regime (Section 115BAC). Copies of Sections 10(5), 80 DD, 80 DDB and Section 115 BAC are enclosed for ready reference as per Annexure.

This issues with the approval of Member (IT), CBDT.

(हरवंद सिंह)

अवर सचिव (आई टी ए)-I

Encls: As above

To

The Under Secretary (Coordination),

Department of Revenue, M/o Finance,

Government of India.

New Delhi.

Copy for information to CIT (C&S), CBDT.