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Income tax treatment of leave travel allowance / concession (LTA / LTC)
The government wants to encourage us to travel more and explore our country, and wants to assist us. That’s why it gives a favourable income tax treatment to allowance given to us for travel. We actually get income tax benefit for tourism! Read on.
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Most salaried people get a special allowance for taking vacations, called Leave Travel Allowance (It is also known as Leave Travel Concession or Leave Travel Assistance).
This LTA / LTC has income tax benefits associated with it, provided you meet certain conditions. Let’s understand the income tax treatment of LTA / LTC better. |
What is Leave Travel Allowance / Leave Travel Concession (LTA / LTC)?
This is a special allowance that most salaried people get. This allowance is meant for traveling – you are expected to utilize it to spend it for tourism-related travel expenses.
It can be given out every year, or once every 2 or 4 years. Many organizations also allow you to accumulate this allowance for 2 years.
Income tax and LTA / LTC
The LTA / LTC that you get is fully exempt from income tax, provided it satisfies certain conditions. Here are the conditions:
The amount is actually spent on travel
You have to actually spend this amount on transportation. The spending can be for you and your family members, but you have to be one of the travelers.
Here, family means spouse and children (including adopted children and stepchildren). Parents, brothers and sisters are also included if they are dependent on you.
It has to be for transportation
The amount has to be spent on transportation – either air, rail or road.
Any amount spent for lodging and boarding is not considered. Thus, food related expenses and hotel expenses are not exempt from income tax.
Also, this exemption is for primary travel between your city of stay and your destination. Other travel expenses like taxi / cab fare, auto fare, etc. can not be claimed as exempt.
Travel within India
The travel has to be within India – foreign travel is not considered. The government wants to boost tourism within India, not international travel!
Shortest Distance and Cap on claim amount
The amount exempt would be the amount required for travel to your destination by the shortest route, depending on the mode of your travel.
If you travel by air, the maximum amount that can be claimed as exempt is the economy class air fare to your destination by the shortest route.
If you travel by rail (or road), the maximum amount that can be claimed as exempt is the air conditioned first class (AC I Class) rail fare to your destination by the shortest route.
(Please see the example at the end of the article to understand this better)
Proof of travel
Proof of travel needs to be preserved and presented to claim this exemption. The tickets are considered valid proof.
If you arrange travel through a hired or rental car, the receipt from the travel agency or car rental agency is considered valid proof. Please note that any non-transport component (like driver allowance) is not considered for income tax exemption.
LTA / LTC and Block of 4 years
Apart form the above conditions, there is one more condition that causes confusion: The LTA / LTC tax exemption can be claimed only twice in a block of 4 years.
These blocks of 4 years are predefined by the government. These are:
2002 – 2005
2006 – 2009
2010 – 2013
And so on. The current block is 2006 – 2009.
Please note that these years are calendar years, and not financial years.
(Confused by terms like financial year and assessment year? Please read “Income Tax (IT) Jargon – Financial Year (FY), Assessment Year (AY) and Previous Year (PY)” to know these terms better)
Let’s understand the concept of “twice in a block of four years” through an example.
If you claim LTA exemption in 2006, then, you can claim it only once more till 2009. Thus, if you claim it again in 2007, you can not claim it before 2010, as you would have already claimed it twice in the block 2006 – 2009.
However, if you do not claim LTA exemption in 2006 and 2007, you can claim it for both 2008 and 2009, and also for 2010 and 2011, as 2010 and 2011 fall under the next block of 4 years: 2010 – 2013. Thus, it is possible to claim LTA / LTC exemption for 4 years in a row!
Carry forward of LTA / LTC Benefits
What if you can not claim LTA / LTC exemption for some reason?
No need to worry. The exemption doesn’t lapse – it can be carried forward to the next block of 4 years.
The only condition in this case is that the exemption has to be availed in the very first year of this subsequent block.
Thus, in this next block, you can claim a total of 3 exemptions!
Spouses and LTA
A question that is very commonly asked is: If both husband and wife are eligible for LTA, can both of them claim it?
Yes, they can very much claim LTA individually. The rules of LTA apply individually to each, which means that each spouse can claim LTA twice in a block of four years.
Thus, a family can claim LTA exemption four times in a block of four years if both spouses are eligible for LTA.
The only restriction is that both spouses can not claim LTA exemption for the same journey.
There is no other restriction: The LTA exemption can be claimed for the same family members, or different family members as allowed by the rules (as explained above). The family can in fact also travel twice in the same year, and each spouse can claim exemption for one journey.
(Note: The rules regarding claims by spouses might be slightly different in case of government employees. Please check with your organization / department to know the exact rules applicable if you are a government employee and claim LTC / LTA)
Example
Let’s say you and your spouse are traveling to Bangalore from Mumbai. But instead of going from Mumbai to Bangalore, you go from Mumbai to Hyderabad, and then got to Bangalore. You travel by train in the AC 3 tier category.
The cost of AC 3 tier train tickets are as follows:
Mumbai – Hyderabad: Rs. 800
Hyderabad – Bangalore: Rs. 700
Bangalore – Hyderabad: Rs. 700
Hyderabad – Mumbai: Rs. 800
Thus, you spend a total of Rs. 6,000 for two people.
Now, the shortest route to your destination in this case would be Mumbai to Bangalore. The AC First class ticket costs Rs. 2,350 for this. So, your round trip fare would have been Rs. 9,400 for two people.
The amount exempt from income tax is the lesser of these two. Thus, in this example, even when you haven’t traveled through the shortest route, you can claim income tax exemption for the full amount of Rs. 6,000.
And what about the actual allowance that you get?
Let’s say you get a leave travel allowance of Rs. 10,000. Would it be fully exempt?
No. As we saw, the amount exempt is the lesser of the amount actually spent and the fare by the defined class through the shortest distance.
Thus, the amount exempt from income tax would be Rs. 6,000. The remaining Rs. 4,000 would be taxable, and would be included in your income.
Happy traveling!
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Comments
Add a new Comment
LTC- employee travels only one side-can exemption be claimed
LTA exemption can be claimed by assessee if the assessee has travelled only one side with parents & spouce .
Re: LTC- employee travels only one side-can exemption be claimed
Hi Rizwan,
I am a little confused - how can you travel only 1 way?
are you saying that the assessee travels with parents & spouse only one way, and they return without the assessee? In that case, I don't think LTC / LTA can be claimed, as the assessee also needs to have traveled.
I am a little confused - how can you travel only 1 way?
are you saying that the assessee travels with parents & spouse only one way, and they return without the assessee? In that case, I don't think LTC / LTA can be claimed, as the assessee also needs to have traveled.
Author:
Rajesh
Jan 17, 2009
Jan 17, 2009
LTA - Tax Calculation
I am working with a multinational company in India. In May'08 , I moved on L1 visa to my US parent company where I am US employee. So in India I got only 1 month salary and I am having 0 tax liability for this financial year. Till now my total LTA have been around 1 Lakh with company. Is it is the right time to encash LTA even with taxable component ? Because even after adding LTA into my annual total income, I will not fall under tax liability ? Or LTA is always taxale and it doesn't matter how much my annual income is ?
Pl. advise.
Thanks
Pl. advise.
Thanks
Re: LTA - Tax Calculation
Hi Rajesh,
I think this is an excellent tax saving idea!
LAT is not always taxable - if you encash it, it is just added to your salary, and is taxed as per prevailing income tax slab rates.
Thus, if encashing it would not take your income up to the taxable level, by all means go ahead and encash it!
I think this is an excellent tax saving idea!
LAT is not always taxable - if you encash it, it is just added to your salary, and is taxed as per prevailing income tax slab rates.
Thus, if encashing it would not take your income up to the taxable level, by all means go ahead and encash it!
Author:
Mukesh
Jan 30, 2009
Jan 30, 2009
Regarding LTA
Dear Sir
I have been working with Pvt Ltd company in gujarat, i want to know the total procedure of LTA, when LTA is available to employee is there any specific time period. If employes are older then 01 year is LTA available to them. At what thing LTA is been calculated on gorss salary or net salary or basic salary what is the percentage of calculation.
Looking for your earliest prompt reply.
Please revert at my email address
Thanks & Regards
Mukesh Hotwani
I have been working with Pvt Ltd company in gujarat, i want to know the total procedure of LTA, when LTA is available to employee is there any specific time period. If employes are older then 01 year is LTA available to them. At what thing LTA is been calculated on gorss salary or net salary or basic salary what is the percentage of calculation.
Looking for your earliest prompt reply.
Please revert at my email address
Thanks & Regards
Mukesh Hotwani
Author:
V.K.sanghvi
Jan 31, 2009
Jan 31, 2009
LTC Exemption
If I encash LTC and subsequently in same year , I travel . can I claim LTC exemption? 2. If LTC amount is more and in one travel i can not fully claim then If I take second travel in same year can I claim both?
Author:
j.moily@direction.biz
Feb 01, 2009
Feb 01, 2009
Proof of travel not required for LTA
As per a SC hearing the proof of travel is not required for claiming LTA.The article is published in ET dated 29/1/2009.As an HR how do we give a tax benefit to employees based on what documents.
Re: Regarding LTA
Hi Mukesh,
There might be company specific policy that state that an employee who has not completed 1 year in service can not avail LTA. I do not know of any such restriction in the law.
Also, private companies specify the LTA as one of the components of the Cost To Company (CTC) salary - it may not correspond to something like a month's salary or two months basic.
Many companies also provide the flexibility to the employees to decide how much LTA they want - employees can decide an amount that saves them the maximum income tax.
So, when it comes to LTA, the policy varies from company to company. It is best to consult your HR department to know the policies of your company.
There might be company specific policy that state that an employee who has not completed 1 year in service can not avail LTA. I do not know of any such restriction in the law.
Also, private companies specify the LTA as one of the components of the Cost To Company (CTC) salary - it may not correspond to something like a month's salary or two months basic.
Many companies also provide the flexibility to the employees to decide how much LTA they want - employees can decide an amount that saves them the maximum income tax.
So, when it comes to LTA, the policy varies from company to company. It is best to consult your HR department to know the policies of your company.
Re: LTC Exemption
Hi,
In my opinion, you can not claim LTC exemption once you encash it. Also, LTC amount has to be utilized in one round trip travel.
In my opinion, you can not claim LTC exemption once you encash it. Also, LTC amount has to be utilized in one round trip travel.
Re: Proof of travel not required for LTA
Hi,
The reports in newspaper headlines are misleading - the court ruling says that the proof of travel does not need to be collected by the employer to give out LTA amount.
This means that only the onus of submitting the proof of travel has shifted - from the employer (who deducts TDS) to the employee.
The basic rule still holds - LTA is exempt from income tax only if proof of travel (tickets, tour operator receipts, etc.) is produced.
The change that has been brought about by this ruling is that instead of the proof of travel being collected by the employer, it would need to be shown to the income tax assessing officer (IT AO) by the employee himself.
From HR point of view, this means that you can disburse LTA amount to an employee even if no proof of travel is submitted - you are no more needed to ensure that the employee has actually traveled.
The reports in newspaper headlines are misleading - the court ruling says that the proof of travel does not need to be collected by the employer to give out LTA amount.
This means that only the onus of submitting the proof of travel has shifted - from the employer (who deducts TDS) to the employee.
The basic rule still holds - LTA is exempt from income tax only if proof of travel (tickets, tour operator receipts, etc.) is produced.
The change that has been brought about by this ruling is that instead of the proof of travel being collected by the employer, it would need to be shown to the income tax assessing officer (IT AO) by the employee himself.
From HR point of view, this means that you can disburse LTA amount to an employee even if no proof of travel is submitted - you are no more needed to ensure that the employee has actually traveled.
Author:
Jyoti
Feb 02, 2009
Feb 02, 2009
Thank you
Thank you for the information.It was useful.
Author:
GIBI JOY
Feb 05, 2009
Feb 05, 2009
how to calculate LTC WHO IS WORKING IN CENTREL GOVERNMENT,
how to calculate LTC WHO IS WORKING IN CENTREL GOVERNMENT,WHOSE BASIC PAY IS Rs. 11520 & GRADE PAY IS Rs. 4600. DESIGNATION: STAFF NURSE. EMPLOYER: ESIC HOSPITAL DELHI.
Re: how to calculate LTC WHO IS WORKING IN CENTREL GOVERNMENT
Hi Gibi,
In private companies, the amount is usually defined and is a part of the cost to company (CTC).
Whereas for government employees, there is usually no fixed amount. But the mode of transport (air / rail) and the class of travel (second class, first class, air conditioned, etc) is restricted based on the rank and pay-scale of the employee.
Therefore, it would be best if you consult your employer / finance department to find out your exact eligibility.
In private companies, the amount is usually defined and is a part of the cost to company (CTC).
Whereas for government employees, there is usually no fixed amount. But the mode of transport (air / rail) and the class of travel (second class, first class, air conditioned, etc) is restricted based on the rank and pay-scale of the employee.
Therefore, it would be best if you consult your employer / finance department to find out your exact eligibility.
Author:
Rajesh
Feb 05, 2009
Feb 05, 2009
LTC Reimbursement
Sir
I am working in a Pvt.Co. You are requested to clarify about the news item is "The Economic Times" dt.29.01.09 that no proof needed to claim LTC as per SC ruling.
Now, our employees are insisting for exemption of LTC reimbursement without proofs from TDS purview on the basis of SC ruling.
Sir I will be very thankful to you if you clarify this issue on the basis of this ruling
Rajesh
I am working in a Pvt.Co. You are requested to clarify about the news item is "The Economic Times" dt.29.01.09 that no proof needed to claim LTC as per SC ruling.
Now, our employees are insisting for exemption of LTC reimbursement without proofs from TDS purview on the basis of SC ruling.
Sir I will be very thankful to you if you clarify this issue on the basis of this ruling
Rajesh
Re: LTC Reimbursement
Hi Rajesh,
There is a lot of confusion about this issue these days!
As I have mentioned in an earlier comment reply, the reports in newspaper headlines are misleading: the court ruling just says that the proof of travel does not need to be collected by the employer to give out LTA amount.
Only the onus of submitting the proof of travel has shifted - from the employer (who deducts TDS) to the employee.
The original rule still holds true - LTA is exempt from income tax only if proof of travel is produced. (tickets, tour operator receipts, etc.)
Thus, instead of the proof of travel being collected by the employer, it would need to be shown to the income tax assessing officer (IT AO) by the employee himself, if asked.
From HR point of view, this means that you can disburse LTA amount to an employee even if no proof of travel is submitted - you are no more needed to ensure that the employee has actually traveled - the responsibility of adhering to the income tax laws is now on the employees.
Author:
Rajesh
Feb 09, 2009
Feb 09, 2009
Re: Re: LTC Reimbursement
I am still not cleared.
If the co. reimbursement the LTC without required documents then should the co. give the employee the benefit of LTC deduction from total salary while computing his/her computation for TDS purpose.
If the co. reimbursement the LTC without required documents then should the co. give the employee the benefit of LTC deduction from total salary while computing his/her computation for TDS purpose.
Re: Re: Re: LTC Reimbursement
Hi Rajesh,
That is how I would interpret it.
The SC has said that the onus of proving tax deductibility is on the employee. Therefore, in my opinion, if the employee wants to claim tax-free LTA, the company should pay the LTA and deduct the amount from the total salary for computation of TDS.
The employee needs to provide the proof of travel to the assessing officer (AO) if demanded. If the LTA is not allowed as tax-free, the employee would need to pay additional tax (with interest, if applicable).
That is how I would interpret it.
The SC has said that the onus of proving tax deductibility is on the employee. Therefore, in my opinion, if the employee wants to claim tax-free LTA, the company should pay the LTA and deduct the amount from the total salary for computation of TDS.
The employee needs to provide the proof of travel to the assessing officer (AO) if demanded. If the LTA is not allowed as tax-free, the employee would need to pay additional tax (with interest, if applicable).
Author:
Rajan
Feb 12, 2009
Feb 12, 2009
Leave travel concession
I read in a tax bulletin that one cannot claim two journeys in one year. This is little confusing. The Act says exemption is available for "any two journeys in the block period of 4 years (calendar)". Suppose, one employee travels in Jan 08 (FY 07-08) and again travels in May 08 (FY 08-09). Assuming that these are the only two travels in this block, what is wrong in performing two travels in a calendar year but different FY? Can this be clarified please?
Author:
Srinivasa Rao Bandla
Feb 13, 2009
Feb 13, 2009
Regarding submission of proof for claming LTA
Do some one clarify me regarding what types of proofs have to be submitted to my employer for claming my LTA.
Do i have to hold any copy of the proofs submitted to the employer.
Thanks,
Srinivasa.
09886543264.
Do i have to hold any copy of the proofs submitted to the employer.
Thanks,
Srinivasa.
09886543264.
Re: Leave travel concession
Hi Rajan,
What you read is right - you can claim LTA exemption only for one journey in a calendar year.
Also, the exemption of LTA is based totally on calendar year, and there is no consideration of a financial year whatsoever.
What you read is right - you can claim LTA exemption only for one journey in a calendar year.
Also, the exemption of LTA is based totally on calendar year, and there is no consideration of a financial year whatsoever.
Re: Regarding submission of proof for claming LTA
Hi Srinivasa,
The proof that you need to submit is the proof that you undertook the journey. Thus, it would be air / rail / bus tickets in most cases.
As far as retaining copies is concerned, my advise would be: Always make it a point to keep a copy of any original that you submit to your employer, or to the income tax (IT) department.
The proof that you need to submit is the proof that you undertook the journey. Thus, it would be air / rail / bus tickets in most cases.
As far as retaining copies is concerned, my advise would be: Always make it a point to keep a copy of any original that you submit to your employer, or to the income tax (IT) department.
Author:
Kirti
Feb 14, 2009
Feb 14, 2009
LTA confusion
Hello,
Need urgent help.
I am working in a mnc at hyderabad. Last year 2008 I have claimed LTA (Tax-excemption) Hyderabad to Delhi. This year also I am going to claim LTA (Tax-excemption). But my HR people told me that I can claim LTA but I can produce bill for my home town journey only.
Is it true that LTA can be claim once for outside home town journey and other for home town journey only ?
Can’t I go two time outside of my home town in a block of 4 year ?
Need urgent response.
Thanks in advance
Need urgent help.
I am working in a mnc at hyderabad. Last year 2008 I have claimed LTA (Tax-excemption) Hyderabad to Delhi. This year also I am going to claim LTA (Tax-excemption). But my HR people told me that I can claim LTA but I can produce bill for my home town journey only.
Is it true that LTA can be claim once for outside home town journey and other for home town journey only ?
Can’t I go two time outside of my home town in a block of 4 year ?
Need urgent response.
Thanks in advance
Re: LTA confusion
Hi Kirti,
This is a very common misconception, but it is just that - a misconception.
LTA can be claimed twice in a block of 4 years, and BOTH journeys can be to any place in India, and not necessarily to your hometown.
As a side note, I believe that government employees have some restriction on the LTC that they can claim - one is for travel anywhere in India, and one is for travel to their home town.
This is a very common misconception, but it is just that - a misconception.
LTA can be claimed twice in a block of 4 years, and BOTH journeys can be to any place in India, and not necessarily to your hometown.
As a side note, I believe that government employees have some restriction on the LTC that they can claim - one is for travel anywhere in India, and one is for travel to their home town.
Author:
Rajan
Feb 16, 2009
Feb 16, 2009
Leave travel concession
Thanks for the reply to my query on LTA. Still - I am not convinced.
The rule says LTA can be claimed twice in a block of four years. I agree it talks about calendar year. But it does not restrict, to my knowledge, that no two journeys can be undertaken in a calendar year. As per IT exemption is concerned, it is allowed twice for the two journeys done in the block period. Hence, my argument is like this. One can take a journey in Jan 08 (AY 08-09) and another in July 08 (AY 09-10). Here, two journeys in the same calendar year but different AYs. Can this be analysed again with any specific ruling for this?
The rule says LTA can be claimed twice in a block of four years. I agree it talks about calendar year. But it does not restrict, to my knowledge, that no two journeys can be undertaken in a calendar year. As per IT exemption is concerned, it is allowed twice for the two journeys done in the block period. Hence, my argument is like this. One can take a journey in Jan 08 (AY 08-09) and another in July 08 (AY 09-10). Here, two journeys in the same calendar year but different AYs. Can this be analysed again with any specific ruling for this?
Author:
Rajan
Feb 16, 2009
Feb 16, 2009
Leave encashment
While leave encashment is worked out, some companies take 30 days in the formula (i.e. to arrive at the basic per day); some follow 26 days. I understand that companies falling under Factories Act have to adopt 26 days basis, assuming the working days to be 26 in a month.
Is this a company policy or as per Factories Act, this needs to be followed? If this is the ruling in case of Factories Act, does it apply to all employees (including managers) in the Company?
Appreicate your clarification on this.
Is this a company policy or as per Factories Act, this needs to be followed? If this is the ruling in case of Factories Act, does it apply to all employees (including managers) in the Company?
Appreicate your clarification on this.
Author:
Priyanalli
Feb 19, 2009
Feb 19, 2009
Why only travel
What is the reason behind that only travel expenses
alone will be reimbursed or exempted from tax ?
Why the travel is allowed only within India ?
Why i can't use my own car for the travel by road ?
Why only two years travels are allowed for exemption ?Why not all the four years ?
alone will be reimbursed or exempted from tax ?
Why the travel is allowed only within India ?
Why i can't use my own car for the travel by road ?
Why only two years travels are allowed for exemption ?Why not all the four years ?
Re: Why only travel
Hi Priyanalli,
Nice question, but unfortunately, it has no definite answer!
The government probably gives the favourable tax treatment to travel to encourage travel - it provides employment to many and boosts the economy. That's why the tax benefit is not available for foreign travel.
As far as other questions are concerned - well, it was decided by some knowledgeable person in the finance ministray! Just like it was decided that section 80C benefit would be limited to Rs. 1 Lakh!
Nice question, but unfortunately, it has no definite answer!
The government probably gives the favourable tax treatment to travel to encourage travel - it provides employment to many and boosts the economy. That's why the tax benefit is not available for foreign travel.
As far as other questions are concerned - well, it was decided by some knowledgeable person in the finance ministray! Just like it was decided that section 80C benefit would be limited to Rs. 1 Lakh!
Author:
Ojesh Kumar
Feb 22, 2009
Feb 22, 2009
Leave encashment
Sir,
I had send a comment on 19-02-2009 regarding leave encashment payment. But the same is not answered. I am again putting the comment and want to know that the payment received for encashemnt of leave for 10 days to avail LTC is chargeable to income tax or not. As per provisions in the rules for LTC implemented by the Sixth CPC 10 days leave encashemnt has been allowed. but it is not clear whether the amount received so is taxable. Please clarify?
thanking you,
yours faithfully
Ojesh Kumar
I had send a comment on 19-02-2009 regarding leave encashment payment. But the same is not answered. I am again putting the comment and want to know that the payment received for encashemnt of leave for 10 days to avail LTC is chargeable to income tax or not. As per provisions in the rules for LTC implemented by the Sixth CPC 10 days leave encashemnt has been allowed. but it is not clear whether the amount received so is taxable. Please clarify?
thanking you,
yours faithfully
Ojesh Kumar
Author:
Ojesh Kumar
Feb 22, 2009
Feb 22, 2009
Leave encashment
In addition to my comment I want to inform that the leave encashemnt of 10 days is in addition to entitled expenditure made on journey fare through rail/bus/air. Please clarify with any specific ruling for this?
Re: Leave encashment
Hi Ojesh,
in my opinion, any leave ancashment is chargeable to tax. Thus, you would have to pay income tax on the amount.
in my opinion, any leave ancashment is chargeable to tax. Thus, you would have to pay income tax on the amount.
Author:
Rajan
Feb 23, 2009
Feb 23, 2009
LTC / Leave encashment
My queries of 16th Feb are yet to be clarified. May I request the expert opinion on these?
Rajan
Rajan
LTA - Nepal Travel
Hi,
I happened to travel to Nepal for a few days this fiscal year. I tried to claim my LTA showing proof of travel (Air Tickets), but the my Firm HR informed me that Nepal travel is International and hence cannot be claimed under LTA rules.
But some of my other friends who travelled with me could claim LTA in their respective firms, as their Firm informed them that Nepal is the only destination which is "An Exception" to the international travel rule with regards to LTA.
Could you please shed some light whether am i eligible to claim deductions by showing my Nepal travel proof?
Also where could i find the supporting documents for this rule. - My 1st year of Tax Filing so a bit confused!!
Your assistance would be greatly appreciated
Thx
Abhishek
I happened to travel to Nepal for a few days this fiscal year. I tried to claim my LTA showing proof of travel (Air Tickets), but the my Firm HR informed me that Nepal travel is International and hence cannot be claimed under LTA rules.
But some of my other friends who travelled with me could claim LTA in their respective firms, as their Firm informed them that Nepal is the only destination which is "An Exception" to the international travel rule with regards to LTA.
Could you please shed some light whether am i eligible to claim deductions by showing my Nepal travel proof?
Also where could i find the supporting documents for this rule. - My 1st year of Tax Filing so a bit confused!!
Your assistance would be greatly appreciated
Thx
Abhishek
Re: LTA - Nepal Travel
Hi Abhishek,
I can understand your problem - taking care of taxation issues is difficult even for people who have been doing it for years!!
Coming to your question - I think your HR is correct. LTA can be claimed only for travel within India - I do not know of any distinction between Nepal and other countries.
The LTA exemption claim of your friends would be disallowed if their case comes up for scrutiny. In fact, they might even have to pay a penalty.
The LTA exemption comes under section 10(5) of the Income Tax Act. You can read the wordings here: http://law.incometaxindia.gov.in/DitTaxmann/IncomeTaxActs/2008ITAct/section10.htm
Be warned , though - this is the bare act, which means that it has a very legal wording!
I can understand your problem - taking care of taxation issues is difficult even for people who have been doing it for years!!
Coming to your question - I think your HR is correct. LTA can be claimed only for travel within India - I do not know of any distinction between Nepal and other countries.
The LTA exemption claim of your friends would be disallowed if their case comes up for scrutiny. In fact, they might even have to pay a penalty.
The LTA exemption comes under section 10(5) of the Income Tax Act. You can read the wordings here: http://law.incometaxindia.gov.in/DitTaxmann/IncomeTaxActs/2008ITAct/section10.htm
Be warned , though - this is the bare act, which means that it has a very legal wording!
Author:
Priyanalli
Feb 23, 2009
Feb 23, 2009
shortest route
Hi,
Thanks for the answers to my queries. But why there is a tax exemption only to the shortest Route ? What can be the logic behind this shortest trip ?
Thanks for the answers to my queries. But why there is a tax exemption only to the shortest Route ? What can be the logic behind this shortest trip ?
Re: shortest route
Hi Priyanalli,
Probably it is to avoid tax evasion. After all, if you are going from Chennai to Delhi for travel, would you go from Chennai to Delhi, or Chennai to Mumbai to Delhi?
Unethical people can misuse the LTA excemption if any route is allowed - and thats why it is limited to the shortest route.
Probably it is to avoid tax evasion. After all, if you are going from Chennai to Delhi for travel, would you go from Chennai to Delhi, or Chennai to Mumbai to Delhi?
Unethical people can misuse the LTA excemption if any route is allowed - and thats why it is limited to the shortest route.
Re: Leave travel concession
Hi Rajan,
You are right - I couldn't find the "only once in a year" restriction in the wordings of the act.
However, I know from my own experience that it is true, and that is how the act is interpreted by all experts. Maybe, I am missing something, or not interpreting something in the act.
Please let me & the readers know if you find out the section / note where this restriction is mentioned.
All readers: Please leave a comment of your know the section / note where this restriction is mentioned. It would be a great help!
You are right - I couldn't find the "only once in a year" restriction in the wordings of the act.
However, I know from my own experience that it is true, and that is how the act is interpreted by all experts. Maybe, I am missing something, or not interpreting something in the act.
Please let me & the readers know if you find out the section / note where this restriction is mentioned.
All readers: Please leave a comment of your know the section / note where this restriction is mentioned. It would be a great help!
Re: Leave encashment
Hi Rajan,
I do not know much about the factories act. However, on some research, this is what I could find:
Cash value of leave = (Basic + DA) * Number of days of leave / 26
This is applicable for both workers and managers.
I do not know much about the factories act. However, on some research, this is what I could find:
Cash value of leave = (Basic + DA) * Number of days of leave / 26
This is applicable for both workers and managers.
Author:
Yash
Mar 01, 2009
Mar 01, 2009
Reg LTA
Is there any minimum number of days required for lta??
Re: Reg LTA
Hi Yash,
There is no minimum number of days in the act, but companies can have their own policies regarding this.
So, for example, some comapny can manadate that a minimum of 5 leaves have to be taken to claim LTA.
There is no minimum number of days in the act, but companies can have their own policies regarding this.
So, for example, some comapny can manadate that a minimum of 5 leaves have to be taken to claim LTA.
Author:
harshad joshi
Mar 04, 2009
Mar 04, 2009
ltc enashment
hi ,ihave avialed both , leave encahment & ltc/lfc encashment. will it qualify for exemption or taxable?
Re: ltc enashment
Hi Harshad,
Yes, you can claim LTA.
You have to take some leaves for travelling to claim LTA exemption. You might also take some other leaves.
But even then, you might have some leaves left, and you can encash them. However, the amount received for the encashed leaves is taxable.
Yes, you can claim LTA.
You have to take some leaves for travelling to claim LTA exemption. You might also take some other leaves.
But even then, you might have some leaves left, and you can encash them. However, the amount received for the encashed leaves is taxable.
Author:
thangappan
Mar 07, 2009
Mar 07, 2009
LTA and LTC
I work for a private company .I have Leave travel allowance (LTA) tax exemption available twice in the block of 4 years .My wife works in Central Government .She has LTC (leave travel concession, twice in a block of 4 years)) where in actual travel expenses are reimbursed.
If I avail the LTC facility which is available to my wife , does it become a taxable perk for me ?Pl clarify .
If I avail the LTC facility which is available to my wife , does it become a taxable perk for me ?Pl clarify .
Re: LTA and LTC
Hi Thangappan,
It would not be a taxable perk for you.
It would be tax exempt income of your wife. There are no tax implications for you.
It would not be a taxable perk for you.
It would be tax exempt income of your wife. There are no tax implications for you.
Author:
Deepti Deshpande
Mar 09, 2009
Mar 09, 2009
leave travel concession
Suppose employees are allowed LTA which is equal to 1month basic pay and dearness allowance.
Is leave travel allowance taxable every year? what if proof of travel is not there?
Is leave travel allowance taxable every year? what if proof of travel is not there?
Author:
Vilas Kolte
Mar 10, 2009
Mar 10, 2009
Regarding The proof Submission
I am working with Indias Largest Petrochemical Unit, I want to Know, according to supreme court decision - Publised in Economics Times dated 19.01.2009 its said that there is no need of proof required for availment of LTA. Whats this means- Is it means IT dept will not req such proof? then why companies asking for the same with details such as receipt, details of journey, purchase receipt of last stay station, vehicle tourist licence xerox.
Re: leave travel concession
Hi Deepti,
In this situation, if you travel 4 times in a bolck of 4 years, 2 LTAs would be tax exempt, whereas 2 would be taxable.
But most companies allow you to carry forward the allowance for 1 year. So, you can travel every 2 years and claim full exemption of the LTAs.
Submission of proof of travel is mandatory. LTA is exempt only actual if travel has been undertaken - and therefore, you need to submit the proof of travel. Without it, the LTA would be fully taxable.
In this situation, if you travel 4 times in a bolck of 4 years, 2 LTAs would be tax exempt, whereas 2 would be taxable.
But most companies allow you to carry forward the allowance for 1 year. So, you can travel every 2 years and claim full exemption of the LTAs.
Submission of proof of travel is mandatory. LTA is exempt only actual if travel has been undertaken - and therefore, you need to submit the proof of travel. Without it, the LTA would be fully taxable.
Re: 60 day withdarwal period
Hi Vilas,
You are slightly mistaken - the court didn't say "there is no need of proof required for availment of LTA". It said that the proof of travel need not be collected by the companies.
This does not mean that the proof is not required.
This just means that the onus of submitting the proof of travel has shifted - from the employer (who deducts TDS) to the employee.
The basic rule still holds - LTA is exempt from income tax only if proof of travel (tickets, tour operator receipts, etc.) is produced.
The change that has been brought about by this ruling is that instead of the proof of travel being collected by the employer, it would need to be shown to the income tax assessing officer (IT AO) by the employee himself.
You are slightly mistaken - the court didn't say "there is no need of proof required for availment of LTA". It said that the proof of travel need not be collected by the companies.
This does not mean that the proof is not required.
This just means that the onus of submitting the proof of travel has shifted - from the employer (who deducts TDS) to the employee.
The basic rule still holds - LTA is exempt from income tax only if proof of travel (tickets, tour operator receipts, etc.) is produced.
The change that has been brought about by this ruling is that instead of the proof of travel being collected by the employer, it would need to be shown to the income tax assessing officer (IT AO) by the employee himself.
Author:
SRIKANTH
Mar 12, 2009
Mar 12, 2009
LTA
sir,
i have a doubt, without applying leave can i claim LTA, if i am ready to pay income tax
sir,
i have a doubt, without applying leave can i claim LTA, if i am ready to pay income tax
LTA rules and policies not clear
Sir,
My previous employers did not have any rule of LTA payment. So I did not claim any LTA though I travelled in year 2007. I have not travelled so far in year 2008-2009.
My current company will pay me LTA in March end or April 2009. So, will this amount be taxable if i do not travel before 31st March 2009 ?
If the 4 year block is 1st Jan 2006 to 31st Dec 2009 - Can i travel in May 2009 and claim LTA exemption from Income Tax ? What if my company says you can claim tax exemption only if you travel before 31st March 2009 ?
I joined this comapny in August 2008, can i claim for travel i made in September 2007 or only for the period after i Joined here ?
Thanks in advance for your help!
My previous employers did not have any rule of LTA payment. So I did not claim any LTA though I travelled in year 2007. I have not travelled so far in year 2008-2009.
My current company will pay me LTA in March end or April 2009. So, will this amount be taxable if i do not travel before 31st March 2009 ?
If the 4 year block is 1st Jan 2006 to 31st Dec 2009 - Can i travel in May 2009 and claim LTA exemption from Income Tax ? What if my company says you can claim tax exemption only if you travel before 31st March 2009 ?
I joined this comapny in August 2008, can i claim for travel i made in September 2007 or only for the period after i Joined here ?
Thanks in advance for your help!
Re: LTA
Hi Srikanth,
Whether you get a leave travel allowance (LTA) or not depends on your pay structure (decided by your employer).
If you get LTA and meet the conditions described in this article (including taking leave to actually travel), the LTA would be exempt from income tax.
If you get LTA and do not fullfill the conditions, your LTA would be taxable.
Thus, yes, without applying for leave you can get LTA if you are ready to pay income tax - provided LTA is a part of your package.
Whether you get a leave travel allowance (LTA) or not depends on your pay structure (decided by your employer).
If you get LTA and meet the conditions described in this article (including taking leave to actually travel), the LTA would be exempt from income tax.
If you get LTA and do not fullfill the conditions, your LTA would be taxable.
Thus, yes, without applying for leave you can get LTA if you are ready to pay income tax - provided LTA is a part of your package.
Re; LTA rules and policies not clear
Hi Sarita,
You can travel LTA only if you get LTA, and have travelled fulfilling the conditions mentioned in the article.
Since your previous employer didn't have LTA, there is no question of the LTA being exempt from tax. You didn't get any LTA - so anyway there is no tax on it.
Remember: You do not claim tax benefit on expense on travel - you claim exemption of the LTA received if you travel.
If you receive LTA in Mar 2009, it would be taxable if you do not travel before 31st Mar 2009.
If you receive LTA in Apr 2009, it would be taxable if you do not travel before 31st Mar 2010.
If you receive LTA in Apr 2009, you can travel in May 2009 (in fact, any time till 31st Mar 2010) and claim LTA exemption from Income Tax for FY 2009-10.
Since you started gettinf LTA only after joining this company, you can claim LTA exemption only for the period after you joined this company.
You can travel LTA only if you get LTA, and have travelled fulfilling the conditions mentioned in the article.
Since your previous employer didn't have LTA, there is no question of the LTA being exempt from tax. You didn't get any LTA - so anyway there is no tax on it.
Remember: You do not claim tax benefit on expense on travel - you claim exemption of the LTA received if you travel.
If you receive LTA in Mar 2009, it would be taxable if you do not travel before 31st Mar 2009.
If you receive LTA in Apr 2009, it would be taxable if you do not travel before 31st Mar 2010.
If you receive LTA in Apr 2009, you can travel in May 2009 (in fact, any time till 31st Mar 2010) and claim LTA exemption from Income Tax for FY 2009-10.
Since you started gettinf LTA only after joining this company, you can claim LTA exemption only for the period after you joined this company.
Author:
John
Apr 07, 2009
Apr 07, 2009
LTA
Since the block of 4 years ends on Dec 31,2009 and if travelled in Jan 2010 then can LTA be claimed for FY 2009-10?
Author:
Soumya
Apr 07, 2009
Apr 07, 2009
Time of joining a job and LTA
Hi,
I started my career in July,2008 in a reputed company. The company offers LTA. I have not claimed LTA for tax exemption in 2008-09 FY.
From your article on LTA/LTC, I came to the know that the current block is 2006-2009. Then how many times am I eligible for LTA this FY ?
(Since, a person is eligible for LTA tax exemption twice in this block, and I have joined the working population only in 2008.)
If I am eligible for tax exemption twice in this block, will I have to make the LTA claim twice in this calender year or I can make a claim in 2009 and another in 2010 (but both in F.Y. 2009-10) ?
I started my career in July,2008 in a reputed company. The company offers LTA. I have not claimed LTA for tax exemption in 2008-09 FY.
From your article on LTA/LTC, I came to the know that the current block is 2006-2009. Then how many times am I eligible for LTA this FY ?
(Since, a person is eligible for LTA tax exemption twice in this block, and I have joined the working population only in 2008.)
If I am eligible for tax exemption twice in this block, will I have to make the LTA claim twice in this calender year or I can make a claim in 2009 and another in 2010 (but both in F.Y. 2009-10) ?
Re: Time of joining a job and LTA
Hi Soumya,
The time of joining a job does not impact how many times you can claim LTA exemption.
Also, the finaicial year has nothing to do with claiming LTA exemption - only calendar years matters in this case.
Thus, if someone joins a job in say Aug 2008, she can claim LTA exemption twice - for journeys made in say Oct 2008 and in May 2009.
So, you can definitely claim LTA exemption twice even if you have joined the workforce only in July 2008.
However, LTA exemption can be claimed only once a year. Thus, now you would not be able to claim two journeys.
But don't worry - the LTA exemption benefit can be carried over for a year.
Thus, you can undertake a journey in 2010, and can claim it towards your quota of two claims for 2006-2009.
The time of joining a job does not impact how many times you can claim LTA exemption.
Also, the finaicial year has nothing to do with claiming LTA exemption - only calendar years matters in this case.
Thus, if someone joins a job in say Aug 2008, she can claim LTA exemption twice - for journeys made in say Oct 2008 and in May 2009.
So, you can definitely claim LTA exemption twice even if you have joined the workforce only in July 2008.
However, LTA exemption can be claimed only once a year. Thus, now you would not be able to claim two journeys.
But don't worry - the LTA exemption benefit can be carried over for a year.
Thus, you can undertake a journey in 2010, and can claim it towards your quota of two claims for 2006-2009.
Re: LTA
Hi John,
If travel is carried out in Jan 2010, LTA can be claimed for FY 2009-10, but it would be counted towards the block of 2010-2013. (Unless you haven't claimed the LTA exemption in the block of 2006-2009).
If travel is carried out in Jan 2010, LTA can be claimed for FY 2009-10, but it would be counted towards the block of 2010-2013. (Unless you haven't claimed the LTA exemption in the block of 2006-2009).
Author:
John
Apr 09, 2009
Apr 09, 2009
Re: LTA
Thanks RaagVamdatt,
Very Useful Info.
Very Useful Info.
Author:
Venkat Matta
Apr 21, 2009
Apr 21, 2009
Leave Travel Concession for Foreign Travel
I am working in a Nationalised Bank, my employer is permitting me to travel by Air in economy class within my air travel entitlement of Mumbai-Delhi-Jammu & back, accordingly, I had travelled from Mumbai-Kaulalampur-Singapore-Delhi and incurred X amount. Kindly clarify on the taxable amount for foreign travel , if so, the Mumbai-Delhi direct flight travel fare needs to be reduced for arriving the taxable amount
Author:
Kapil Gupta
Apr 21, 2009
Apr 21, 2009
LTA wil be allowed for 2 trips only in block of 4 calender year or for 2 claims
Hi,
I just want to know that a person can claim for more than one trip in block of 4 calendar year.
E.g in year 2009 i have made 4 trip and can I claim for all 4 trip in single claim.
Pls clearify that 2 in 4 caledar year is 2 claims or 2 trips.
Rgs,
Kapil
I just want to know that a person can claim for more than one trip in block of 4 calendar year.
E.g in year 2009 i have made 4 trip and can I claim for all 4 trip in single claim.
Pls clearify that 2 in 4 caledar year is 2 claims or 2 trips.
Rgs,
Kapil
Author:
G Viswanathan
Apr 22, 2009
Apr 22, 2009
Availing LTC separately by self and family
Dear Sir,
Can you clarify whether LTC can be availed separately by self and then by family on different dates - ofcourse, during the same financial year and still can claim IT exemption for both.
Further, whether the destinations can be different for self and then family.
Thanks for your advice.
Regards / Viswanathan
Can you clarify whether LTC can be availed separately by self and then by family on different dates - ofcourse, during the same financial year and still can claim IT exemption for both.
Further, whether the destinations can be different for self and then family.
Thanks for your advice.
Regards / Viswanathan
Re: Leave Travel Concession for Foreign Travel
Hi Venkat,
LTA exemption is not allowed for foreign travel. So, you can't claim expense on the whole trip as exempt.
If you have Mumbai - Delhi to and fro tickets, you would be able to claim that expense as exempt.
LTA exemption is not allowed for foreign travel. So, you can't claim expense on the whole trip as exempt.
If you have Mumbai - Delhi to and fro tickets, you would be able to claim that expense as exempt.
Re: LTA wil be allowed for 2 trips only in block of 4 calender year or for 2 claims
Hi Kapil,
It is 2 claims in a block of 4 years, and each claim can only be for 1 trip. Thus, effectively, it is 2 trips.
It is 2 claims in a block of 4 years, and each claim can only be for 1 trip. Thus, effectively, it is 2 trips.
Re: Availing LTC separately by self and family
Hi Viswanathan,
For claiming LTA exemption, the person claiming the exemption has to travel. Thus, family travelling alone can't be claimed. By the same logic, the destination has to be the same.
For claiming LTA exemption, the person claiming the exemption has to travel. Thus, family travelling alone can't be claimed. By the same logic, the destination has to be the same.
Author:
Ashish Desai
Apr 27, 2009
Apr 27, 2009
LTA Proofs Submission
Hi,
For Air Travel what are the proofs required? I only left out with a ticket which has been mailed to me by my travel agent.
My Employer is asking about Boarding Passes, which I've lost somewhere.
What is the alternate way/does those boarding passes are really required by an Employer to process LTA? I think e-tickets from my e-mail would suffice...
Regards,
--
[AD]
For Air Travel what are the proofs required? I only left out with a ticket which has been mailed to me by my travel agent.
My Employer is asking about Boarding Passes, which I've lost somewhere.
What is the alternate way/does those boarding passes are really required by an Employer to process LTA? I think e-tickets from my e-mail would suffice...
Regards,
--
[AD]
Re: LTA Proofs Submission
Hi Ashish,
Boarding passes are the best proof of travel for air travel, as that shows that you actually undertook the travel.
You only option in this case is to claim the LTA exemption when you file your tax return, and claim a refund. You should be able to convince the assessing officer (AO) that you had actually traveled.
Boarding passes are the best proof of travel for air travel, as that shows that you actually undertook the travel.
You only option in this case is to claim the LTA exemption when you file your tax return, and claim a refund. You should be able to convince the assessing officer (AO) that you had actually traveled.
Author:
ANIL LIMAYE
May 12, 2009
May 12, 2009
FOREIGN LTC
I have purchased Air India tickets for availing LTC from Mumbai to New York & return.
Can I claim partial exemption (for payments made to Air India) from the LTC amount taxable ?
Anil Limaye
Can I claim partial exemption (for payments made to Air India) from the LTC amount taxable ?
Anil Limaye
Re: FOREIGN LTC
Hi Anil,
No income tax benefit with respect to LTC is available for foreign travel - the travel has to be within India.
So, you can't claim any exemption.
No income tax benefit with respect to LTC is available for foreign travel - the travel has to be within India.
So, you can't claim any exemption.
Author:
Geeta
Jun 04, 2009
Jun 04, 2009
Tax benefit on LTA
I do not get LTA as a component in my salary. Can i still claim Income Tax deduction by providing tickets for my travel with family
TAx benefit on LTA
Hi
I have travelled from Pune to Delhi and Delhi to Chandigarh on March 08(Return via same route). Since I have traveled in march, My Company does not allowed me to claim LTA for financial year 08-09.
Could you please advice me how i can claim Tax benefit for LTA.
Is it some thing i need to Claim while submitting It return? If Yes what is the process!
Thanks and Regards
Amit Karmalkar
I have travelled from Pune to Delhi and Delhi to Chandigarh on March 08(Return via same route). Since I have traveled in march, My Company does not allowed me to claim LTA for financial year 08-09.
Could you please advice me how i can claim Tax benefit for LTA.
Is it some thing i need to Claim while submitting It return? If Yes what is the process!
Thanks and Regards
Amit Karmalkar
Re: Tax benefit on LTA
Hi Geeta,
Sorry, but you need to get a specific component of salary as LTA in order to claim LTA exemption.
Sorry, but you need to get a specific component of salary as LTA in order to claim LTA exemption.
Re: TAx benefit on LTA
Hi Amit,
The company is right - it is in the financial year 07-08, so can't be claimed in 08-09.
You would need to file a revised income tax return for FY07-08 for claiming the exemption of LTA with respect to this travel.
The company is right - it is in the financial year 07-08, so can't be claimed in 08-09.
You would need to file a revised income tax return for FY07-08 for claiming the exemption of LTA with respect to this travel.
Author:
amitkarmalkar
Jun 14, 2009
Jun 14, 2009
Re: TAx benefit on LTA
Hi RaagVamdatt
Thanks for Reply, But my tax liability for Year 07-08 is Null so i did not claim LTA for that Year. can i claim in this(08-09) financial Year, as you Explained earlier LTA is calculated on Annul basis(Jan-Dec) not on Financial year basis.
Also i did not claim LTA since 2006 shall i get a benefit while filling IT Returns for 08-09. If yes how i get it done? Also i need your opinion on E returns. I have return of -40000 in Form 16 from IT department. How i can get it faster?
Amit Karmalkar
Thanks for Reply, But my tax liability for Year 07-08 is Null so i did not claim LTA for that Year. can i claim in this(08-09) financial Year, as you Explained earlier LTA is calculated on Annul basis(Jan-Dec) not on Financial year basis.
Also i did not claim LTA since 2006 shall i get a benefit while filling IT Returns for 08-09. If yes how i get it done? Also i need your opinion on E returns. I have return of -40000 in Form 16 from IT department. How i can get it faster?
Amit Karmalkar
Author:
yogesh
Jun 17, 2009
Jun 17, 2009
Home LTC for PSU employees
I am a PSU employee. Our Co. allows two (2 nnos) all India LTC to all employee. Additionally for employees having home town outside north east but posted in Northe East states, two ( 2 nos.) home LTC to visit home town is provided. That is a total of four LTC in a block of four years.
Kindly clarify whether home LTC benefits are taxable. if all the four LTC are availed in one block say 2006-2009.
Best Regards
Yogesh
Kindly clarify whether home LTC benefits are taxable. if all the four LTC are availed in one block say 2006-2009.
Best Regards
Yogesh
Re: Re: TAx benefit on LTA
Hi Amit,
The tax benefit for LTA can be claimed only for the financial year in which you travel. Therefore, LTA exemption for travel during previous years can not be claimed.
I do not have much experience with e-filing, so I would not be able to guide you about that. Sorry! But in any case, I believe the refund process is improving, and you should get the refund within 6 months to 1 year of filing the return.
The tax benefit for LTA can be claimed only for the financial year in which you travel. Therefore, LTA exemption for travel during previous years can not be claimed.
I do not have much experience with e-filing, so I would not be able to guide you about that. Sorry! But in any case, I believe the refund process is improving, and you should get the refund within 6 months to 1 year of filing the return.
Re: Home LTC for PSU employees
Hi Yogesh,
The tax exemption rules remain the same, irrespective of the number of LTC / LTA you get in the block of 4 years.
Only 2 LTA / LTC can be claimed as exempt in a block of 4 years.
The tax exemption rules remain the same, irrespective of the number of LTC / LTA you get in the block of 4 years.
Only 2 LTA / LTC can be claimed as exempt in a block of 4 years.
Author:
sujait
Jun 29, 2009
Jun 29, 2009
LTC Rule
I work for a private company (MNC).I have taken Leave travel allowance for spicific block for a place.
My wife works in State Government .Can she avail LTC for the same black , for the same place. As both of us are not govt. employee.
My wife works in State Government .Can she avail LTC for the same black , for the same place. As both of us are not govt. employee.
Re: LTC Rule
Hi Sujait,
Yes, she can, provided you have actually travelled two times to the same place.
Yes, she can, provided you have actually travelled two times to the same place.
Author:
Deepak
Jul 12, 2009
Jul 12, 2009
what is the max. limit of amount under LTA tax saving?
Author:
Suraj
Jul 13, 2009
Jul 13, 2009
LTA
i joined my first job in a private company in june08. Ireceived the LTA for jun08-mar09 in April after deducting Tax. As i received it in April it is not a part of my Form 16 given by the company. However i had travelled on holiday during the year. Can i claim the LTA exemption for the current year? i.e Feb09 travel in FY09. or do i have to claim it in FY10 for a travel in FY10?
Author:
Varadarajan
Jul 14, 2009
Jul 14, 2009
Block Period Vs Financial Year confusions
I have made a travel in Mar-2009.
According to my employer, i can claim only for the financial year irrespective of the block periods.
pl explain for the travel made on Mar 2009 ie Jan-2009-Dec -2010 block, can it be claimed for the financial year 2009-10.
According to my employer, i can claim only for the financial year irrespective of the block periods.
pl explain for the travel made on Mar 2009 ie Jan-2009-Dec -2010 block, can it be claimed for the financial year 2009-10.
Re:
Hi Deepak,
There is no upper limit or cap on the amount of LTA exemption that you can get. The amount of exemption you get would be calculated as described in the article.
There is no upper limit or cap on the amount of LTA exemption that you can get. The amount of exemption you get would be calculated as described in the article.
Re: LTA
Hi Suraj,
Since you received the LTA in Apr 09, it is part of your FY09-10 pay.
Therefore, you would be able to claim exemption only for travel undertaken in FY09-10 - that is, between Apr 2009 and Mar 2010.
Since you received the LTA in Apr 09, it is part of your FY09-10 pay.
Therefore, you would be able to claim exemption only for travel undertaken in FY09-10 - that is, between Apr 2009 and Mar 2010.
Re: Block Period Vs Financial Year confusions
Hi Varadarajan,
LTA exemption for travel in Mar 09 needs to be done in FY 2008-09.
Here is the explanation: LTA exemption of any travel can be claimed only in that financial year. However, such exemption can not be claimed more than twice in a block of 4 years.
(Even if you travel in every financial year, and get LTA in every financial year, you can not claim it more than twice in a block of pre-defined 4 years)
LTA exemption for travel in Mar 09 needs to be done in FY 2008-09.
Here is the explanation: LTA exemption of any travel can be claimed only in that financial year. However, such exemption can not be claimed more than twice in a block of 4 years.
(Even if you travel in every financial year, and get LTA in every financial year, you can not claim it more than twice in a block of pre-defined 4 years)
Author:
chidanand
Jul 21, 2009
Jul 21, 2009
LTA amount tax exemption during returns file
Hi,
I have provided the Travel reciept & Leave application sheet to my Employer for LTA Tax exemption in this financial year. But for some reason he has not consider for the same & put all my LTA amount as taxable.
In my Form 16 also it is shown as taxable & deducted the tax for that.
Now in my Tax returns which is to be submitted can I show this LTA amount for tax exemption, will the authority will accept this or not. Is it possible or not.
Please share your idea.
I have provided the Travel reciept & Leave application sheet to my Employer for LTA Tax exemption in this financial year. But for some reason he has not consider for the same & put all my LTA amount as taxable.
In my Form 16 also it is shown as taxable & deducted the tax for that.
Now in my Tax returns which is to be submitted can I show this LTA amount for tax exemption, will the authority will accept this or not. Is it possible or not.
Please share your idea.
Re: LTA amount tax exemption during returns file
Hi Chidanand,
Yes, it is possible. You can claim LTA exemption in your ITR and claim a refund.
Yes, it is possible. You can claim LTA exemption in your ITR and claim a refund.
Author:
Vag
Jul 22, 2009
Jul 22, 2009
Travelling with friends and claiming LTA for self and spouse
I wish to travel in a group with my friends on a single railway ticket. Can i still claim LTA for me and my spouse?
Author:
Sanket
Jul 23, 2009
Jul 23, 2009
LTA claiming for travel of spouse
Hi,
I am relocated to Kolkata from Nov'08.
I got my family to kolkata from Pune by flight in March'09 and sent them back to pune in June'09.
Can I claim LTA exemption for this travel?
I was not part of the travel.
Thanks,
Sanket
I am relocated to Kolkata from Nov'08.
I got my family to kolkata from Pune by flight in March'09 and sent them back to pune in June'09.
Can I claim LTA exemption for this travel?
I was not part of the travel.
Thanks,
Sanket
Author:
Ashish
Jul 24, 2009
Jul 24, 2009
My employer considers the LTA as taxable only
Hi,
My employer considers the LTA as taxable only. I get paid the LTA amount once in a year directly deposited to my bank. The employer considers it as fully taxable income when giving me form 16. Can I still claim the LTA exemption on my ITR? How, since there is no column for LTA exemption on the ITR form!?
My employer considers the LTA as taxable only. I get paid the LTA amount once in a year directly deposited to my bank. The employer considers it as fully taxable income when giving me form 16. Can I still claim the LTA exemption on my ITR? How, since there is no column for LTA exemption on the ITR form!?
Author:
Basavaraj
Jul 25, 2009
Jul 25, 2009
LTA Exemption Query
Dear Raagvamdatt
Its been a great learning for me post visiting your site. Thank you.
I have few queries on LTA, seek your help in resolving:
1. Harish has travelled in Feb-07, He couldn't claim LTA before 31st March 07. Can he claim LTA exemption in FY 07-08.
2. Harish has travelled in Apr-07 & then in Sep-07. Can he claim LTA exemption for both the journeys in the same financial year (Assuming he has not claimed LTA exemption earlier).
3. Is it compulsory to claim the LTA exemption in the same financial year in which you travelled.
4. Can I claim LTA exemption in 2009, for the travel done in 2007(Assuming he has not claimed LTA exemption earlier).
Thanks in Advance
Basavaraj
Its been a great learning for me post visiting your site. Thank you.
I have few queries on LTA, seek your help in resolving:
1. Harish has travelled in Feb-07, He couldn't claim LTA before 31st March 07. Can he claim LTA exemption in FY 07-08.
2. Harish has travelled in Apr-07 & then in Sep-07. Can he claim LTA exemption for both the journeys in the same financial year (Assuming he has not claimed LTA exemption earlier).
3. Is it compulsory to claim the LTA exemption in the same financial year in which you travelled.
4. Can I claim LTA exemption in 2009, for the travel done in 2007(Assuming he has not claimed LTA exemption earlier).
Thanks in Advance
Basavaraj
Author:
Naveej
Jul 26, 2009
Jul 26, 2009
LTA claim if travel is starting a FY but ending in another FY
Hi,
Thanks for the great info!
I travelled on 27th March 2009 and returned back on 02nd April 2009. In that case, should I claim for LTA for both to-and-fro journey in FY 2008-2009 or should I claim onward journey in FY 2008-2009 and return journey in FY 2009-2010?
Thanks in advance.
Thanks for the great info!
I travelled on 27th March 2009 and returned back on 02nd April 2009. In that case, should I claim for LTA for both to-and-fro journey in FY 2008-2009 or should I claim onward journey in FY 2008-2009 and return journey in FY 2009-2010?
Thanks in advance.
Re: Travelling with friends and claiming LTA for self and spouse
Hi Vag,
As long as you and your spouse are traveling, you can claim LTA exemption for both of you.
As long as you and your spouse are traveling, you can claim LTA exemption for both of you.
Re: LTA claiming for travel of spouse
Hi Sanket,
If you are not part of the travel, you can not claim LTA exemption.
If you are not part of the travel, you can not claim LTA exemption.
Re: My employer considers the LTA as taxable only
Hi Ashish,
Yes, you can do that.
The LTA exemption comes under section 10(5) of the Income Tax Act. Therefore, claim this in Schedule S - 2 (Allowances exempt under section 10).
Yes, you can do that.
The LTA exemption comes under section 10(5) of the Income Tax Act. Therefore, claim this in Schedule S - 2 (Allowances exempt under section 10).
Re: LTA Exemption Query
Hi Basavaraj,
Thanks for the kind words...
However, I request you to ask a query about your specific situation, and not multiple generic situations.
I am sure you would understand my time constraint.
Thanks for the kind words...
However, I request you to ask a query about your specific situation, and not multiple generic situations.
I am sure you would understand my time constraint.
Re: LTA claim if travel is starting a FY but ending in another FY
Hi Naveej,
Thanks.
You should claim both to and fro journeys in FY2008-09.
Thanks.
You should claim both to and fro journeys in FY2008-09.
Author:
Shiva
Jul 28, 2009
Jul 28, 2009
LTA Claim
Hi
I have travelled in last financial year (in Dec-08), but couldn't claim the LTA exemption. My LTA amount of previous year is carried forward to current year. Can I claim LTA exemption by producing the bills of Dec-08 in this year. Please help...
Regards
Shiva
I have travelled in last financial year (in Dec-08), but couldn't claim the LTA exemption. My LTA amount of previous year is carried forward to current year. Can I claim LTA exemption by producing the bills of Dec-08 in this year. Please help...
Regards
Shiva
Author:
Basavaraj
Jul 28, 2009
Jul 28, 2009
Re: LTA Exemption Query
Hi
Appreciate your efforts & commintment.
My query is, whether in the same financial year can I claim LTA exemption twice if I have never claimed in the LTA-block.
Thanks in Advance
Basavaraj
Appreciate your efforts & commintment.
My query is, whether in the same financial year can I claim LTA exemption twice if I have never claimed in the LTA-block.
Thanks in Advance
Basavaraj
Re: My employer considers the LTA as taxable only
Thank you Raag :-)
you said, "Therefore, claim this in Schedule S - 2 (Allowances exempt under section 10). "
In ITR-2 there is a section called 'Schedule S', is that the appropriate place?
I have been looking only in ITR-1 and searching for any annexure /suppliments for the LTA claims... my bad... you opened my blinds... Thank you so much!
you said, "Therefore, claim this in Schedule S - 2 (Allowances exempt under section 10). "
In ITR-2 there is a section called 'Schedule S', is that the appropriate place?
I have been looking only in ITR-1 and searching for any annexure /suppliments for the LTA claims... my bad... you opened my blinds... Thank you so much!
Re: LTA Claim
Hi Shiva,
If the travel is in Dec 08, it can be claimed while filing the tax returns for FY 08-09.
If the travel is in Dec 08, it can be claimed while filing the tax returns for FY 08-09.
Re: Re: LTA Exemption Query
Hi Basavraj,
No, it can be claimed only for 1 travel.
No, it can be claimed only for 1 travel.
Re: Re: My employer considers the LTA as taxable only
Hi Aabhat,
Yes, thats the place. I'm glad I could be of help :-)
Yes, thats the place. I'm glad I could be of help :-)
Author:
Prem
Aug 06, 2009
Aug 06, 2009
LTA Exemption for travel to Bhutan
Hi,
This page has a lot of useful information on IT Exemption for availing LTA. Thanks!
You have also explicitly stated that income tax exemption cannot be claimed for international travel. But it is not clear how travel to Bhutan is being considered for IT Exemption to avail LTA. Bhutan is not a separate country, but an Indian protectorate.
Pls advice. Regards,
Prem
This page has a lot of useful information on IT Exemption for availing LTA. Thanks!
You have also explicitly stated that income tax exemption cannot be claimed for international travel. But it is not clear how travel to Bhutan is being considered for IT Exemption to avail LTA. Bhutan is not a separate country, but an Indian protectorate.
Pls advice. Regards,
Prem
Author:
Kavitha
Aug 07, 2009
Aug 07, 2009
Leave Travel Allowance
Is Assessee compulsory while in journey
Author:
Rahul
Aug 11, 2009
Aug 11, 2009
LTA
Hi,
I had an query on Claiming LTA.
Currently we are in the LTA bracket of Jan 2006 to Dec 2009. So if i claim the LTA before Dec 2009 i.e say in the month of Sep 2009, Will i be eligible to claim the LTA twice in the next bracket of Jan 2010 to Dec 2013. The confusion is due to the Income tax assesment year is from 1 April 2009 to 31st March 2010. So my form 16 will reflect the LTA in March 2010. So will I be eligible for claiming LTA twice in the Next Bracket.
Thanking You,
Rahul
I had an query on Claiming LTA.
Currently we are in the LTA bracket of Jan 2006 to Dec 2009. So if i claim the LTA before Dec 2009 i.e say in the month of Sep 2009, Will i be eligible to claim the LTA twice in the next bracket of Jan 2010 to Dec 2013. The confusion is due to the Income tax assesment year is from 1 April 2009 to 31st March 2010. So my form 16 will reflect the LTA in March 2010. So will I be eligible for claiming LTA twice in the Next Bracket.
Thanking You,
Rahul
Re: LTA Exemption for travel to Bhutan
Hi Prem,
Bhutan is definitely a separate sovereign country, and travel to it is considered international travel.
Therefore, you would not get LTA exemption for any travel to Bhutan.
Bhutan is definitely a separate sovereign country, and travel to it is considered international travel.
Therefore, you would not get LTA exemption for any travel to Bhutan.
Re: Leave Travel Allowance
Hi kavitha,
I guess you are asking if the assessee has to travel to claim LTA exemption - the answer is yes.
I guess you are asking if the assessee has to travel to claim LTA exemption - the answer is yes.
Re: LTA
Hi Rahul,
Yes, you would be able to if you travel twive between Jan 2010 and Dec 2013.
However, please remember that only 1 LTA exemption can be claimed in a financial year (Apr to Mar). So, please plan your journeys accordingly.
Yes, you would be able to if you travel twive between Jan 2010 and Dec 2013.
However, please remember that only 1 LTA exemption can be claimed in a financial year (Apr to Mar). So, please plan your journeys accordingly.
Author:
DOLLY
Nov 19, 2009
Nov 19, 2009
MAXIMUM EXEMPTION
What is the maximum tax exemption i can avail on LTA.I have bills of Rs. 40,000 will the total amount be exempted from tax.
I suppose it was Rs 20000,but iam not sure of wether it has changed in the lst couple of years or not.
Please answer me...
I suppose it was Rs 20000,but iam not sure of wether it has changed in the lst couple of years or not.
Please answer me...
Re: MAXIMUM EXEMPTION
Hi Dolly,
There is no upper limit - the only restriction is regarding the "shortest distance of travel" as described in the article.
There is no upper limit - the only restriction is regarding the "shortest distance of travel" as described in the article.
Author:
Guru
Nov 25, 2009
Nov 25, 2009
LTA - for package tour
November 1st week I made a Travel from Bangalore to Delhi by air and from Delhi I had a package tour arranged which included travel to Shimla, Manali, and return to Delhi by road. I returned to Bangalore by Air.
So I have flight tickets/boarding pass for Bangalore to Delhi travel while I have Travel Certificate issued by the Travel agent for travel from Delhi to Shimla, Manali and return.
Would the entire journey be eligible for LTA claim or would only Bangalore to Delhi and return be eligible?
So I have flight tickets/boarding pass for Bangalore to Delhi travel while I have Travel Certificate issued by the Travel agent for travel from Delhi to Shimla, Manali and return.
Would the entire journey be eligible for LTA claim or would only Bangalore to Delhi and return be eligible?
Author:
Kaushik
Nov 30, 2009
Nov 30, 2009
LTA Proof
As I read through the articles, it seems as per a SC ruling the onus of showing Proof of travel lies with employee and not employer. My employer took all air borading passes, rail and road transport tickets for granting the LTA. Now if required how can I show that to Income Tax dept?
Re: LTA - for package tour
Hi Guru,
If you have the cost of transport separately mentioned in the travel agent receipt, you should be able to claim the journey expenses from Delhi to either Shimla or Manali.
If not, you would be limited to Bangalore - Delhi air travel.
If you have the cost of transport separately mentioned in the travel agent receipt, you should be able to claim the journey expenses from Delhi to either Shimla or Manali.
If not, you would be limited to Bangalore - Delhi air travel.
Re: LTA Proof
Hi Kaushik,
You should be able to get it back from the employer if you site a valid reason, like a query from the assessing officer (AO).
You should be able to get it back from the employer if you site a valid reason, like a query from the assessing officer (AO).
Author:
Pritpal
Dec 03, 2009
Dec 03, 2009
LTA of Spouse
I am working in private MNC , in CTC 40000, is declared as ltc. I have not availed the ltc for current year and I will get that ltc part of my CTC at end of financial year after tax deduction.
Now my question is that : My wife is Central Govt employee , Now her employer is saying that you will not get lta for your family (including me) because your husband already getting ltc part of CTC at the end of year.
Is it right......? Can my wife get ltc for famly including me? As I am not taking any ltc exception and it is part of my CTC.
Please help me for same.....and if she can claim ltc then what proof I can give to her employer. As her employer is not agrees with same.
I shall be very grateful to you.
Regards
Pritpal
Now my question is that : My wife is Central Govt employee , Now her employer is saying that you will not get lta for your family (including me) because your husband already getting ltc part of CTC at the end of year.
Is it right......? Can my wife get ltc for famly including me? As I am not taking any ltc exception and it is part of my CTC.
Please help me for same.....and if she can claim ltc then what proof I can give to her employer. As her employer is not agrees with same.
I shall be very grateful to you.
Regards
Pritpal
Author:
Kishore
Dec 08, 2009
Dec 08, 2009
LTA claiming for trips during Jan- March in any year
Hi,
I have serious confusions in claiming LTA for trips done during Jan - March month of any year or especially for during transition years of LTA block Like for Eg: If i travel in March 2010, this comes under block 2010 - 2013 of LTA as per Govt rules. So i should be able to claim this anytime in 2010. But as per financial year, we can not claim for bills before March in next financial year... i.e. 2010 - 2011 financial year. And also I have problems for claiming this in financial year 2009 - 2010. My company says, they accept LTA only until Dec 2009 for this financia year. Does it mean i cant expect any tax exemption for the trip I do in March 2010 ? Please could any of you provide me some answers to this.
I have serious confusions in claiming LTA for trips done during Jan - March month of any year or especially for during transition years of LTA block Like for Eg: If i travel in March 2010, this comes under block 2010 - 2013 of LTA as per Govt rules. So i should be able to claim this anytime in 2010. But as per financial year, we can not claim for bills before March in next financial year... i.e. 2010 - 2011 financial year. And also I have problems for claiming this in financial year 2009 - 2010. My company says, they accept LTA only until Dec 2009 for this financia year. Does it mean i cant expect any tax exemption for the trip I do in March 2010 ? Please could any of you provide me some answers to this.
Author:
Ramya Umesh
Dec 08, 2009
Dec 08, 2009
Claim in which Year
Hi,
I would like to know if the person has travelled in March 10, which financial year should the claim be made.
Whether I would claim it in the March 09 - 10 financial year cycle or March 10 -11 financial year.
Since as mentioned by you LTA are considered on a Calendar Cycle.
Thanks in advance!!!
Regards
Ramya
I would like to know if the person has travelled in March 10, which financial year should the claim be made.
Whether I would claim it in the March 09 - 10 financial year cycle or March 10 -11 financial year.
Since as mentioned by you LTA are considered on a Calendar Cycle.
Thanks in advance!!!
Regards
Ramya
Author:
Swati
Dec 14, 2009
Dec 14, 2009
LTA related
Hi,
I have claimed for LTA in March 2009 for the travel I made in 2008. This year also I had a trip in May. Can I claim for this year's (2009 ) trip now in December. Please reply urgent.
Thanks,
Swati
I have claimed for LTA in March 2009 for the travel I made in 2008. This year also I had a trip in May. Can I claim for this year's (2009 ) trip now in December. Please reply urgent.
Thanks,
Swati
Author:
Mrudula
Dec 16, 2009
Dec 16, 2009
LTA for dependents traveling in different dates
Hi
I work in a Multinational company. My parents are my dependents. They travelled to Trivandrum from Kerala on 15-Oct-09 & I travelled on 7-Nov-09. The three of us returned to Hyd on 18-Nov. Can I claim LTA for all three travels?
Thanks
Mrudula
I work in a Multinational company. My parents are my dependents. They travelled to Trivandrum from Kerala on 15-Oct-09 & I travelled on 7-Nov-09. The three of us returned to Hyd on 18-Nov. Can I claim LTA for all three travels?
Thanks
Mrudula
Author:
Prasanth
Dec 28, 2009
Dec 28, 2009
LTA Query
I have not claimed LTA during the period 2006-09. As per my company rules, I am eligible upto Rs.25,000 p.a. and need to take atleast 5 days PL. I have taken 8 days PL in 2009 and would like to know if I could claim upto a maximum of Rs.50,000 for the journey done during this period? Also, since I work in Delhi, we(me and my wife), made a trip to Mumbai, where my dependent parents live and all 4 of us made a journey to Kanyakumari and returned in the same manner. Will this itinerary be eligible for LTA claim? Looking forward to your prompt reply to clarify my doubts.
Author:
Mangesh
Dec 31, 2009
Dec 31, 2009
LTA for different mode of transport and dates
Hi I have a query which is not being answered before.
If myself and my parents travel to same destination but on different mode of transport and different dates which overlap with each other will the expenses be tax free under LTA.
E.g.
I travel by Air on 26 Feb as PUNE-GOA-Bangalore and then take a Tourist vehicle to Mysore.
My Parents travel from Pune to Bangalore by Road on 2 Mar and meet me in Bangalore on 4 March and continue the trip to Mysore with me in their rented car. Later I return by AIR same route Bangalore-Goa-Pune. on 8 March. While my parents arrive by car to Pune on 12 Mar.
Will such travel qualify as a travel for single LTA claim.
How should one plan the travel to get LTA benefit in such a scenario where mode of transport and dates might be differring ?
If myself and my parents travel to same destination but on different mode of transport and different dates which overlap with each other will the expenses be tax free under LTA.
E.g.
I travel by Air on 26 Feb as PUNE-GOA-Bangalore and then take a Tourist vehicle to Mysore.
My Parents travel from Pune to Bangalore by Road on 2 Mar and meet me in Bangalore on 4 March and continue the trip to Mysore with me in their rented car. Later I return by AIR same route Bangalore-Goa-Pune. on 8 March. While my parents arrive by car to Pune on 12 Mar.
Will such travel qualify as a travel for single LTA claim.
How should one plan the travel to get LTA benefit in such a scenario where mode of transport and dates might be differring ?
Author:
Gaurav
Jan 05, 2010
Jan 05, 2010
LTA Bills
Can I claim LTA using Rental Car privately hired? If yes Is there any limitation on the amount spend on the Car Rental against which LTA can be claimed?
Author:
Sunny
Jan 09, 2010
Jan 09, 2010
LTA exemption
I have already claimed LTA twice in the block 2006-2009. Now can i claim the LTA for a travel done in Dec 2009, while filing income tax return in mar 2010. What if the journey is from Dec 2009 - Jan 03 2010. Can i then claim it in 2010 - 2013 block?
Author:
Manish
Jan 19, 2010
Jan 19, 2010
Maximum Amount of LTA that can be claimed
I wanted to know about the maximum amount that can be claimed under LTA
Author:
Prashant
Jan 22, 2010
Jan 22, 2010
Hi,
can i avail for LTA over and above 80c+80d?
Prashant
can i avail for LTA over and above 80c+80d?
Prashant
Hi,
I am planning for my LTA in this year. I am planning to Travel from Mumbai to Aizawl(Mizoram) by Air. While Return I want to travel by Train as I want to hop at Shillong, Guwahati, Silliguri, Howrah and then Back to Mumbai.
How the Travel will be Calculated for Tax, will it be Mumbai ~ Aizawl and Back or some other Calculation?
Also, as this is my First LTA in Past 10 YEars, I will be eligible for Three LTA in the current Block of 4 Years, correct?
Ashok
I am planning for my LTA in this year. I am planning to Travel from Mumbai to Aizawl(Mizoram) by Air. While Return I want to travel by Train as I want to hop at Shillong, Guwahati, Silliguri, Howrah and then Back to Mumbai.
How the Travel will be Calculated for Tax, will it be Mumbai ~ Aizawl and Back or some other Calculation?
Also, as this is my First LTA in Past 10 YEars, I will be eligible for Three LTA in the current Block of 4 Years, correct?
Ashok
Confusion for claming LTA during Block Transition
Hi,
I have some confusions in claiming LTA for trips done during Jan - March especially during block transition period (Block 20006-09 to 2010-13). If i travel in Feb 2010, this will come under block 2010 - 2013 of LTA but during fiscal 2010-11 , i can not claim for bills before April. i.e. jan 2010 - mar 2010. So how should i claim the LTA for travel during jan 2010-mar 2010.
I have some confusions in claiming LTA for trips done during Jan - March especially during block transition period (Block 20006-09 to 2010-13). If i travel in Feb 2010, this will come under block 2010 - 2013 of LTA but during fiscal 2010-11 , i can not claim for bills before April. i.e. jan 2010 - mar 2010. So how should i claim the LTA for travel during jan 2010-mar 2010.
Author:
Rahul
Feb 02, 2010
Feb 02, 2010
Are Rented Taxi Bills Eligible for LTA Exemption
Hi,
My employer is not accepting travel bills of hired taxi for LTA expemption. Would like to know if according to LTA rules, bills of hired taxi are expempted for LTA?
What if the destination place does not have any rail or air connectivity, hence i travel by air to an intermediate destination & do a road travel by hired taxi. What are the components I can claim here? Is it both return Air fare & rented taxi fare?
Thanks.
My employer is not accepting travel bills of hired taxi for LTA expemption. Would like to know if according to LTA rules, bills of hired taxi are expempted for LTA?
What if the destination place does not have any rail or air connectivity, hence i travel by air to an intermediate destination & do a road travel by hired taxi. What are the components I can claim here? Is it both return Air fare & rented taxi fare?
Thanks.
Query On L T A
Respected Learned Friends,Financial Experts and Scholars,
If The company is paying a annual salary of Rs.6,00,000/ as per the details given below:
Basic Pay inclusive of D A - 25,000
H R A - 12,500
Conveyance - 5,000
Entertainment Allowance - 6,000
Special Allowance - 1,500
In the above case can a employee claim L T A. Is this employee is eligible to claim L T A.
Thanks and regards
Venkattaraman A
If The company is paying a annual salary of Rs.6,00,000/ as per the details given below:
Basic Pay inclusive of D A - 25,000
H R A - 12,500
Conveyance - 5,000
Entertainment Allowance - 6,000
Special Allowance - 1,500
In the above case can a employee claim L T A. Is this employee is eligible to claim L T A.
Thanks and regards
Venkattaraman A
Author:
Chetan Sharma
Feb 08, 2010
Feb 08, 2010
LTA : Paid leave requirement
Hi,
I am working in a hyderabad firm,
My employer has put up a condition saying that 3 days paid
leave should be availed by associate during travel to claim
LTA exemption.
Is there any such rule by IT Dept for claiming LTA.
Many thanks
Regards,
Chetan
I am working in a hyderabad firm,
My employer has put up a condition saying that 3 days paid
leave should be availed by associate during travel to claim
LTA exemption.
Is there any such rule by IT Dept for claiming LTA.
Many thanks
Regards,
Chetan
Author:
Durgesh Kalpande
Feb 08, 2010
Feb 08, 2010
LTA when not working
Hi,
I have travelled to a destination when I was between 2 jobs (not working) i.e. relieved from Company A and have not yet joined Company B. Can I get tax exemption for this journey in LTA?
I have travelled to a destination when I was between 2 jobs (not working) i.e. relieved from Company A and have not yet joined Company B. Can I get tax exemption for this journey in LTA?
Author:
Sarita
Feb 13, 2010
Feb 13, 2010
LTA Official Rules
where can i read full rules related to LTA ?
Author:
SS
Feb 13, 2010
Feb 13, 2010
LTA Rules
I am supposed to receive Rs 23500/- - annual payment for my LTA part of CTC from my Co. Our CO. has asked us to 1) fill up a declaration form to avail the exemption and they say>
2) Exemption is allowed only two times in Four Years block I.e. Jan 2006 to Dec 2009 – Hence employee who have not availed it for two times can fill up the form by giving
Minimum 4 days leave taken between April 2009 to Dec 2009 to be shown.
3) 2nd option is employee can claim for exemption in next block of 4 years ie-Jan 2010 to Dec 2013. For that leave period will be from Jan 2010 to march 2010.
4) All other employee will get LTA which will be taxable.
5) If any employee do not want LTA in the March should inform regional HR before 15 Feb 2010 and by 26th HR will send consolidated list to paymentoffice to HOLD the LTA.
I want more clarification on LTA Rules. I did travel in Sept 2009 for 4 days with my parents, but may not have bills of travel for full 23K amount. What declaration should I give or should I take taxable LTA payment or should i take payment in month of April only so that taxability can be taken care in next financial year. I have NOT availed exemption at any time till now with this Co. Please help.
2) Exemption is allowed only two times in Four Years block I.e. Jan 2006 to Dec 2009 – Hence employee who have not availed it for two times can fill up the form by giving
Minimum 4 days leave taken between April 2009 to Dec 2009 to be shown.
3) 2nd option is employee can claim for exemption in next block of 4 years ie-Jan 2010 to Dec 2013. For that leave period will be from Jan 2010 to march 2010.
4) All other employee will get LTA which will be taxable.
5) If any employee do not want LTA in the March should inform regional HR before 15 Feb 2010 and by 26th HR will send consolidated list to paymentoffice to HOLD the LTA.
I want more clarification on LTA Rules. I did travel in Sept 2009 for 4 days with my parents, but may not have bills of travel for full 23K amount. What declaration should I give or should I take taxable LTA payment or should i take payment in month of April only so that taxability can be taken care in next financial year. I have NOT availed exemption at any time till now with this Co. Please help.
Author:
Prakash
Feb 15, 2010
Feb 15, 2010
LTA for spouse in case both have travelled seperately
In case husband and wife have travelled seperately, can LTA be claimed for both.
My company is saying that if spouse has not accompanied with me, then i cannot claim their travels.
My company is saying that if spouse has not accompanied with me, then i cannot claim their travels.
MY LTA
I am supposed to receive Rs 23500/- - annual payment for my LTA part of CTC from my Co. Our CO. has asked us to 1) fill up a declaration form to avail the exemption and they say>
2) Exemption is allowed only two times in Four Years block I.e. Jan 2006 to Dec 2009 – Hence employee who have not availed it for two times can fill up the form by giving
Minimum 4 days leave taken between April 2009 to Dec 2009 to be shown.
3) 2nd option is employee can claim for exemption in next block of 4 years ie-Jan 2010 to Dec 2013. For that leave period will be from Jan 2010 to march 2010.
4) All other employee will get LTA which will be taxable.
5) If any employee do not want LTA in the March should inform regional HR before 15 Feb 2010 and by 26th HR will send consolidated list to paymentoffice to HOLD the LTA.
I want more clarification on LTA Rules. I did travel in Sept 2009 for 4 days with my parents, but may not have bills of travel for full 23K amount. What declaration should I give or should I take taxable LTA payment or should i take payment in month of April only so that taxability can be taken care in next financial year. I have NOT availed exemption at any time till now with this Co. Please help.
2) Exemption is allowed only two times in Four Years block I.e. Jan 2006 to Dec 2009 – Hence employee who have not availed it for two times can fill up the form by giving
Minimum 4 days leave taken between April 2009 to Dec 2009 to be shown.
3) 2nd option is employee can claim for exemption in next block of 4 years ie-Jan 2010 to Dec 2013. For that leave period will be from Jan 2010 to march 2010.
4) All other employee will get LTA which will be taxable.
5) If any employee do not want LTA in the March should inform regional HR before 15 Feb 2010 and by 26th HR will send consolidated list to paymentoffice to HOLD the LTA.
I want more clarification on LTA Rules. I did travel in Sept 2009 for 4 days with my parents, but may not have bills of travel for full 23K amount. What declaration should I give or should I take taxable LTA payment or should i take payment in month of April only so that taxability can be taken care in next financial year. I have NOT availed exemption at any time till now with this Co. Please help.
Author:
Ravi sharma
Feb 18, 2010
Feb 18, 2010
Query related to LTA
last LTA period was 15.02.2008 to 19.02.2008 (5days)
current LTA period is 13.02.2010 to 15.02.2010 (3days)
shall any problem will arise in I.T. relating to the period i.e. previously i have availed 5 days & now 3 days as above.
current LTA period is 13.02.2010 to 15.02.2010 (3days)
shall any problem will arise in I.T. relating to the period i.e. previously i have availed 5 days & now 3 days as above.
Author:
Ram
Mar 12, 2010
Mar 12, 2010
LTA calculated on pro-rata bases?
Hi,
I have declared my LTA as 40000rs. But I claimed only 25000rs. But I resigned In 25th-Feb-2010 itself. I have been working for 5yrs for this company. Now they are saying they will calculate LTA as pro-rata basis and hence I'll get only 10810 only instead of 14500. (Ofcourse taxes will be deducted on this)
My CTC doesnt have any seperate component as LTA. I could opt for LTA, then it'll be taken from Special Allowance.
Should I get 14,500rs or 10810rs? (before taxes apply)
Please let me know.
-ram.
I have declared my LTA as 40000rs. But I claimed only 25000rs. But I resigned In 25th-Feb-2010 itself. I have been working for 5yrs for this company. Now they are saying they will calculate LTA as pro-rata basis and hence I'll get only 10810 only instead of 14500. (Ofcourse taxes will be deducted on this)
My CTC doesnt have any seperate component as LTA. I could opt for LTA, then it'll be taken from Special Allowance.
Should I get 14,500rs or 10810rs? (before taxes apply)
Please let me know.
-ram.
Author:
Vikas Kulai
Mar 24, 2010
Mar 24, 2010
Maximum LTA limit
Is there an absolute limit on LTA claims, assuming. My employer has earmarked more than 1lac as LTA, but I feel this amount cannot be claimed because
Author:
Vikas Kulai
Mar 24, 2010
Mar 24, 2010
Maximum LTA limit
Is there an absolute limit on LTA claims, assuming. My employer has earmarked more than 1lac as LTA, but I feel this amount cannot be claimed because -
1. Very difficult to claim such amounts since it may not be possible to get tickets, given the Ist AC or economy travel restriction (and only domestic travel) ,
2. I have a feeling that the maximum amount is capped based on the Basic pay.
Would be great if someone can help out with the max limit.
Thanks
1. Very difficult to claim such amounts since it may not be possible to get tickets, given the Ist AC or economy travel restriction (and only domestic travel) ,
2. I have a feeling that the maximum amount is capped based on the Basic pay.
Would be great if someone can help out with the max limit.
Thanks
Author:
Subodh Patil
Apr 23, 2010
Apr 23, 2010
Traveling in India with my Own Car
If I am traveling in India with my Family in my own car, can claim for LTA? What will be considered as valid proof of travel?
Author:
Monika
May 05, 2010
May 05, 2010
quiry
what is the Max. limit for LTC in case of different categories of ohfficers of officials. e.g Class-1 officer Class-2 officers and so on.
Author:
manisha
May 13, 2010
May 13, 2010
Regarding LTA exemption.
hi,
i had a travel in january 2010.
i cudnot submit the proofs as it was beyond the current LTA cycle of 2006-2009.
when i went ahead to submit it in this time's block, 2010-2013, the company people told me it is for last financial year so you cannot submit it this year.
can you please tell me the relationship between LTA years and the financial years.
if possible also let me know if there is a policy which states it clearly so that i can tell it to them and show that as a proof.
i had a travel in january 2010.
i cudnot submit the proofs as it was beyond the current LTA cycle of 2006-2009.
when i went ahead to submit it in this time's block, 2010-2013, the company people told me it is for last financial year so you cannot submit it this year.
can you please tell me the relationship between LTA years and the financial years.
if possible also let me know if there is a policy which states it clearly so that i can tell it to them and show that as a proof.
Author:
shilpa more
May 17, 2010
May 17, 2010
lta
I HAD NOT CLAIMED MY LTA FOR THE FY 08-09 & 09-10 BUT I LIKED TO CLAIMED IT ON THE NEXT FOUR YEARS BLOCK 2010-2013,CAN I GET THE LTA CLAIM IF I GET THEN IS IT TAXABLE.
Author:
Anubhav
May 17, 2010
May 17, 2010
First class rail fare to be used for claculation is for normal mail/exress train or can be of Rajdhani?
Author:
PRASAD
May 18, 2010
May 18, 2010
TAX PROVISIONS ON FOREIGN VISIT UNDER LTC
Sir,
I am working in a Public Sector Bank. As per the provisions, I am eligible to avail LTC facility within India. However, if I visit abroad under the said LTC facility, the amount reimbursable would be as per my eligibility i.e., for the shortest distance between the starting point to the farthest place in India.. I have availed the LTC facility covering the places as under:
Mangalore-Bangalore-Chennai-Kaulalampur-Singapore-Delhi-Srinagar-Gulmarg-Srinagar-Delhi-Bangalore-Mangalore.
I understand that the expenses incurred on visit abroad is taxable under Income-Tax Act. In this connection, I may please be enlightened with the following information:
a) Whether the expense incurred on my return journey from Singapore to Delhi is taxable?
b) If taxable, is there any provision under the Income-Tax Rules to claim exemption from the taxable amount for the eligible amount under LTC i.e., notional fare from Mangalore to Delhi which is reimbursable under LTC facility though I travelled from Mangalore and reached Delhi after covering the places abroad as above?
Yours faithfully,
Prasad
I am working in a Public Sector Bank. As per the provisions, I am eligible to avail LTC facility within India. However, if I visit abroad under the said LTC facility, the amount reimbursable would be as per my eligibility i.e., for the shortest distance between the starting point to the farthest place in India.. I have availed the LTC facility covering the places as under:
Mangalore-Bangalore-Chennai-Kaulalampur-Singapore-Delhi-Srinagar-Gulmarg-Srinagar-Delhi-Bangalore-Mangalore.
I understand that the expenses incurred on visit abroad is taxable under Income-Tax Act. In this connection, I may please be enlightened with the following information:
a) Whether the expense incurred on my return journey from Singapore to Delhi is taxable?
b) If taxable, is there any provision under the Income-Tax Rules to claim exemption from the taxable amount for the eligible amount under LTC i.e., notional fare from Mangalore to Delhi which is reimbursable under LTC facility though I travelled from Mangalore and reached Delhi after covering the places abroad as above?
Yours faithfully,
Prasad
Author:
ankush agrawal
May 20, 2010
May 20, 2010
tax on LTA if i will not take LTA
if i will not take LTA what percentage of LTA ammount i have to pay as tax
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