CA Sandeep Kanoi

CA Sandeep KanoiLeave Travel Allowance (LTA) is the most common element of compensation adopted by employers to remunerate employees due to the tax benefits attached to it.  An LTA is the remuneration paid by an employer for Employee’s travel in the country, when he is on leave with the family or alone. LTA amount is tax free. Section 10(5) of the Income-Tax Act, 1961, read with Rule 2B, provides for the exemption and outlines the conditions subject to which LTA is exempt. Through this write-up, I want to shed light on the taxability and some other interesting relevant aspects which you as a salaried employee must keep in mind.

Exemption of Fare Only LTA exemption can be claimed where the employer provides LTA to employee for leave to any place in India taken by the employee and their family. Such exemption is limited to the extent of actual travel costs incurred by the employee. The total cost of the holidays is not covered, only the travelling cost is covered.

ID-100263929Travel within India only allowed- Travel has to be undertaken within India and overseas destinations are not covered for exemption.

Exemption on Actual Travel Expense For example, where an employer provides LTA of Rs. 25,000, but an employee spends only Rs. 20,000 on the travel cost, then the exemption is limited to only Rs. 20,000. Travel cost means the cost of travel and does not include any other expenses such as food, hotel stay etc.

Meaning of Family for LTA :– The meaning of ‘family’ for the purposes of exemption includes spouse and children and parents, brothers and sisters who are wholly or mainly dependent on you. An individual would not be able to claim the exemption in relation to his parents, brother or sisters unless they are wholly or mainly dependent on the individual.

Restriction on Number of Child for Claiming LTA :- Further, exemption is not available for more than two children of an individual born after October 01, 1998. This restriction does not apply in respect of children born before this date, and also in cases where an individual, after having one child, begets multiple children (twins or triplets or quadruplets, etc.) on the second occasion. The term “Child” includes a step-child and an adopted child of the individual.

Is exemption available every year?

No. The tax rules provide for an exemption only in respect of two journeys performed in a block of four calendar years. The current block runs from 2014-2017. If an individual does not use their exemption during any block on any one or on both occasions, their exemption can be carried over to the next block and used in the calendar year immediately following that block.

In such cases, the journey performed to claim such exemption will not be counted for the purposes of regulating future exemptions allowable for the succeeding block. For example, Mr. X joins an organisation on April 1, 2012 and is entitled to a LTA of Rs 30,000 per annum (financial year 2012-13).

X undertook a journey in December 2012 and used his exemption. However, for his LTA entitlement for 2013-14, he did not undertake a journey during the calendar year 2013.

He can undertake the journey in 2014 to claim the exemption in relation to the LTA. He would also be able to use the LTA benefit for two other journeys which he can undertake in the current block 2014-17 in relation to his LTA entitlement for future years.

Proof of travel

Supreme Court has held in the case of Larsen & Toubro and ITI that employers are under no statutory obligation to collect bills and details to prove that the employees had utilised the amounts obtained against these claims on travel and related expenses.

Employers while assessing the travel allowance claims, do not need to collect proof of travel to submit to the tax authorities. Though it is not mandatory for employers to demand proof, they still have the right to demand documentary proof depending on its policy. The Judgement of Supreme Court has only moved the responsibility from the employer to the employee, the assessing officer can still ask for the employee to provide details of travel.

The individual however needs to keep copies for his or her own records. Such proofs are helpful at the time of the audit of the tax return of the individual. Proof of travel could be, for example, tickets, boarding passes, invoice of travel agent, duty slip etc .

Here we would like also to draw attention of the employers to Circular No. 8/2013 dated 10-10-2013 which says that in respect of LTA The employer has to satisfy the obligation that leave travel (fare) concession is not taxable in view of section 10(5) the employer is not only required to be satisfied about the provisions of the said clause but also to keep and preserve evidence in support thereof. In our opinion the circular failed to take into account SC Judgment in the case of Larsen & Toubro and ITI and Employer are not bound to mandatorily preserve the Documents.

During the Fringe Benefit tax (FBT) regime, provision of paid holidays, including travel cost to any place, stay expenses etc. were subject to FBT in the hands of employers and were not taxable in the hands of individuals. Many employers extended the paid holiday benefit instead of LTA.

Now with the elimination of FBT , with effect from. April 1, 2009, paid holiday benefit is fully taxable in the hands of employees and, therefore, employers are reintroducing the LTA element by withdrawing the paid holidays benefit.

Does claiming LTA in alternate years mean that the two year entitlement gets added together?

It does. If you are entitled to an LTA of Rs.10,000 per year and do not utilize it for the the first year it is carried forward to the next year. In the second year you can claim the entire amount (Rs.20,000) as tax exempt provided you spend it according to the specification in LTA tax laws as detailed above.

Carry over concession for Leave Travel Allowance :- Leave Travel Allowance (LTA) comes with a carry forward feature. You can carry forward your Leave Travel Allowance in the situation that it has not been used. It can be brought forward and claimed in the first year of the next block. Here we would like to mention that only one LTA can be brought forward and claimed in the first year of the next block.

Can I Claim LTA Twice in a Year:-  Though you can claim two journeys in a block of four years, you can claim the LTA benefit just once in a year. You cannot claim both the journeys in one year. So, while a person can get an income tax exemption for two journeys in a block of four calendar years, he can make a trip only once a year. If you make two trips in a year, you lose one. One way out is to claim one and make your spouse claim the other in case your spouse is also working.

LTA in case of Switch of JOB :- If you switch jobs, you can get the LTA not only from your present organisation but also from your former employer, if the concession is lying unutilised.  Let’s say that, in the 2010-13 block, you claimed LTA in 2011. In 2012, you switched jobs. You can still claim your second journey with your new employer. Of course, your new employer will ask to look at your earlier tax returns to see whether it has been claimed or not.

Amount Exempted

1. Journey performed by Air – Economy Air fair of National carrier by the shortest route or the amount spent which ever is less will be exempt

2. Journey performed by Rail – A.C. first class rail fare by shortest route.or amount spent which ever is less will be exempt.

3. Place of origin and destination place of journey connected by rail but journey performed by other mode of transport – A.C. first class rail fare by shortest route or amount spent which ever is less.

4. Place of origin & destination not connected by rail(partly/fully) but connected by other recognised Public transport system – First class or deluxe class fare by shortest route or amount spent which ever is less.

5. Place of origin & destination not connected by rail(partly/fully) and not connected by other recognised Public transport system also – AC first class rail fare by shortest route (as the journey had been performed by rail) or the amount actually spent ,which ever is less.

Extract of Section 10(5)

“Section 10(5)  in the case of an individual, the value of any travel concession or assistance received by, or due to, him,—

(a)  from his employer for himself and his family, in connection with his proceeding on leave to any place in India ;

(b)  from his employer or former employer for himself and his family, in connection with his proceeding to any place in India after retirement from service or after the termination of his service,

subject to such conditions as may be prescribed (including conditions as to number of journeys and the amount which shall be exempt per head) having regard to the travel concession or assistance granted to the employees of the Central Government :

Provided that the amount exempt under this clause shall in no case exceed the amount of expenses actually incurred for the purpose of such travel.

Explanation.—For the purposes of this clause, “family”, in relation to an individual, means—

(i)  the spouse and children of the individual ; and

(ii)  the parents, brothers and sisters of the individual or any of them, wholly or mainly dependent on the individual; ]”

Conditions for the purpose of section 10(5) as Prescribed in Rule 2B of Income Tax Rules- Extract of Rule 2B

2B. (1) The amount exempted under clause (5) of section 10 in respect of the value of travel concession or assistance received by or due to the individual from his employer or former employer for himself and his family, in connection with his proceeding,—

(a)  on leave to any place in India;

(b)  to any place in India after retirement from service or after the termination of his service,

shall be the amount actually incurred on the performance of such travel subject to the following conditions, namely :—

[(i)  where the journey is performed on or after the 1st day of October, 1997, by air, an amount not exceeding the air economy fare of the national carrier by the shortest route to the place of destination;

(ii)  where places of origin of journey and destination are connected by rail and the journey is performed on or after the 1st day of October, 1997, by any mode of transport other than by air, an amount not exceeding the air-conditioned first class rail fare by the shortest route to the place of destination; and

(iii) where the places of origin of journey and destination or part thereof are not connected by rail and the journey is performed on or after the 1st day of October, 1997, between such places, the amount eligible for exemption shall be :—

(A)  where a recognised public transport system exists, an amount not exceeding the 1st class or deluxe class fare, as the case may be, on such transport by the shortest route to the place of destination; and

(B)  where no recognised public transport system exists, an amount equivalent to the air-conditioned first class rail fare, for the distance of the journey by the shortest route, as if the journey had been performed by rail.]

(2) The exemption referred to in sub-rule (1) shall be available to an individual in respect of two journeys performed in a block of four calendar years commencing from the calendar year 1986 :

[Provided that nothing contained in this sub-rule shall apply to the benefit already availed of by the assessee in respect of any number of journeys performed before the 1st day of April, 1989 except to the extent that the journey or journeys so performed shall be taken into account for computing the limit of two journeys specified in this sub-rule.]

(3) Where such travel concession or assistance is not availed of by the individual during any such block of four calendar years, an amount in respect of the value of the travel concession or assistance, if any, first availed of by the individual during first calendar year of the immediately succeeding block of four calendar years shall be eligible for exemption.

Explanation : The amount in respect of the value of the travel concession or assistance referred to in this sub-rule shall not be taken into account in deter-mining the eligibility of the amount in respect of the value of the travel con-cession or assistance in relation to the number of journeys under sub-rule (2).]

[(4) The exemption referred to in sub-rule (1) shall not be available to more than two surviving children of an individual after 1st October, 1998 :

Provided that this sub-rule shall not apply in respect of children born before 1st October, 1998, and also in case of multiple births after one child.]

 Republished with amendments

Image courtesy of bplanet at FreeDigitalPhotos.net

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  • Deepak Gupta

    Hi

  • Deepak Gupta

    Hi,

    LTA exemption rules refer to calendar year therefore I am having following query:

    In case I have taken LTA advance in Feb’ 15 however I have traveled during Nov’ 15. Since both LTA advance & Travel against LTA advance falls in same calendar year therefore I should be eligible for LTA exemption for FY 2015-16. Please advise

  • Mohit Choudhary

    Only urs can be claimed in that case.

  • Anuj Jaiswal

    this is as per your salary structure/paid by Company and actual amount spent on ravel.

  • Anuj Jaiswal

    no.

  • Ashutosh Agarwal

    Hi , I have claimed LTA taxable and then traveled later on. Can i get the tax rebate during efiling of return ?

  • rama murali Tsundupalli

    Once my employer has approved only 38350, saying this is the max will be provided for a forest journey as per the act. Is it so. Then pls tell me the act details.

    • Varma alluri

      The maximum amount of LTA which
      you can claim is lower of the amount of LTA given by your employer or
      money spent by you on such travel..some companies give 1 month basic salary under LTA, some uses 1-10% of
      CTC and some companies provide a cap of 75000/- or 100000(depend on the
      CTC of an employee).

  • Vinay

    Hi Tax guru,
    Recently i been to trip (group trip in bus) which covers 8 places (i.e. Bangalore-Mysore-Wayanad,…, Bangalore) which costs upto Rs. 32022. Please could you confirm, Am i eligible to claim whole amount 32K? or does it cover only one source and destination?

    Thanks
    Vinay

    • Varma alluri

      let say if You traveled Delhi to Mumbai on a holiday. So the cost of your travel from Delhi to Mumbai and Mumbai to Delhi will be eligible for LTA.

      If you decide to go to Mumbai via Agra,
      Jhansi and Itarsi, your LTA from Delhi to Agra will be covered. But Agra
      to Mumbai will not be covered.

      Let’s take another scenario you traveled from Mumbai — Kerala –Delhi — Mumbai

      If you take a direct connection, you will be eligible for LTA. Mumbai — Kerala — Delhi — Mumbai: LTA covered

      But if you throw in Hyderabad, then it goes out of gear.

      Mumbai — Thiruvananthapuram: LTA covered
      Thiruvananthapuram — Hyderabad — Delhi: LTA not covered
      Delhi — Mumbai: LTA covered

      And coming to your second question As per the provisions of
      income tax act and rules there are no monetary limits either as
      percentage or absolute amount in respect of LTA. So each employer has
      the freedom the decide what component of salary one wants to allow its
      employee to claimed as LTA. The amount of LTA, of course, should be
      reasonable in relation to overall salary of the employee
      The maximum amount of LTA which
      you can claim is lower of the amount of LTA given by your employer or
      money spent by you on such travel.
      If you still have any tax related queries and need tax saving tips you can call /whatsapp us : 9052535440.write us : dsssvtax@gmail.com

  • vimal kothari

    Is LTA allowed post retirement..?

    • AD

      I am assuming that one has no income post retirement then in this case you can not claim LTA. LTA is given during service period and not post retirement.

  • AD

    Yes. You can not claim in the same year twice, however you can claim two times in a block of four years.

  • AD

    Answers as below:
    1. Yes
    2. No
    3. No. Boarding passes are required
    4. Only round trip journey cost will be refunded. You can not claim for the flight which you missed but you can use the separate return flight ticket.

  • Amit Singhvi

    If I am taking taxable LTA and not travelling to any where, is it mandatory to take leaves. As far as I understand, leave is mandatory only when you are planning to travel and take it as Non-Taxable

    • Pankaj Baishnab

      No dude, for taxable claim you don’t need to be on leave and you don’t need to travel either

  • Pankaj Baishnab

    You can claim LTA only once a year, for a single journey

  • hema

    As per LTA exemption; Journey performed by Air – Economy Air fair of National carrier by the shortest route or the amount spent which ever is less will be exempt – Here my doubt is the whole amount exempted? For more clarity airfare is inclusive of base fare, airline fuel charge and others like User development fee, Passenger service fee, Development fee and service tax on the above. Please clarify

    • Varma alluri

      Yes,Whole amount is Exempted.

  • suman biswas

    Hi, as I understood that LTA claimed in the manner discussed above in a 4 years block will help the employee to save tax on the amount claimed. But, can an employee claim the LTA for the previous years ( say 2011, 2012, 2013) now which is still unclaimed and not released by the employer even on the ending of the previous block ie 2010-13 ? Will the amount be taxable on release? Who should pay the tax – employee or employer on behalf of the employee ( TDS ) ? Please confirm.

  • urmi

    if I am taking taxable LTA, how is it calculated..i mean if i am getting rs. 20000 per ann actual what will be teh amount after tax deduction

  • Navneet Jachak

    I travelled using car & claimed LTA, however they have considered railway fare for exempting tax & not the actual car fare I submitted. Is it correct?

    • Varma alluri

      If you could not get public transport and resorted to private transport
      like renting a car, get a bill issued by the rental company. If the
      bill is not accepted by your employer, you can always file an income tax
      return, claim an exemption and get a refund.If you still have any tax related queries and need tax saving tips you
      can call /whatsapp us : 9052535440.write us : dsssvtax@gmail.com

      • Navneet Jachak

        Thank you very much…

  • Deepak Rotey

    Can i submit only Agent Invoice as a proof instead of tickets to claim the LTA. please advice.

    • Varma alluri

      If the bill is not accepted by your employer, you can always file an income tax return, claim an exemption and get a refund.If you still have any tax related queries and need tax saving tips you can call /whatsapp us : 9052535440.write us : dsssvtax@gmail.com

    • Varma alluri

      Yes you can submit and If the bill is not accepted by your employer, you can always file an income tax return, claim an exemption and get a refund.

  • Varma alluri

    If your family travels without you, no LTA
    can be claimed. You have to make the trip, either by yourself or, if
    claiming for your family, you should travel with them.
    If you still have any tax related queries and need tax saving tips you can call /whatsapp us : 9052535440.write us : dsssvtax@gmail.com

    • Srenevasan Nachiappan

      Hi…. I went on a trip with family to Coorg in a tempo traveller.Can I use the traveller bill to claim the LTA?

      • Varma alluri

        Yes you can use Travel bill to claim LTA.But Only Travel Expenses are eligible for LTA Benefit.Ask for the break up of expenses to claim travel expenses.

      • Varma alluri

        Yes you can claim LTA with traveller bill but take break up of travel expenses.Only travel expenses covered under LTA.

      • Varma alluri

        Yes you can claim LTA by submitting Traveller bill but only travel cost is eligible for LTA ask for breakup of expenses of Travel.

  • nandha kumar r

    I availed leave from 28/03/2016 to 02/04/2016.Whether I am eligible to claim LTA for the financial year 2015-2016 or not. Pls advice

  • Unnikrishnan

    Hello , good evening to u… I haven’t clime the LTA for last year …and also for this year also .. so will i tax exemption on it if am not claiming continues year..

  • Archana Revankar

    I have not allotted LTA in last financial year. But I have made a travel in last financial year. How to claim that

    • Rohan Patil

      If you had not availed LTA in last financial year, then you may not be able to claim it for that particular financial year, even though you traveled. If you wish, you can allot LTA for the current financial year and avail tax benefits from this year onward.

  • Varma alluri

    The maximum amount of LTA which you can claim is lower of the amount of LTA given by your employer or money spent by you on such travel..some companies give 1 month basic salary under LTA, some uses 1-10% of CTC and some companies provide a cap of 75000/- or 100000(depend on the CTC of an employee).If you still have any tax related queries and need tax saving tips you can call /whatsapp us : 9052535440.write us : dsssvtax@gmail.com

  • Varma alluri

    The maximum amount of LTA which you can claim is lower of the amount of LTA given by your employer or money spent by you on such travel.
    Local Traveling doesn’t qualify for LTA.
    If you still have any tax related queries and need tax saving tips you can call /whatsapp us : 9052535440.write us : dsssvtax@gmail.com

  • Varma alluri

    you can still claim at while
    filing your return provided you have actually incurred the expenses. You
    will have to produce the documents in case you case is selected for
    detailed scrutiny.

  • lax

    Hi, I had travelled in 2014 as well as 2015. I have both journey’s tickets. Now when I ask my company’s finance people, they say that you cannot claim for any previous years. Now you have to travel in 2016/2017 to claim the new ones only. What I knew already is that we should be able to claim twice in a block of 4 years (2014-17) as per Govt policies. So I should be able to submit one journey ticket of 2014 or 2015 (anyone of them) and anyone from coming two years. Please guide me how can I do that. Since my company finance people are not helpful in giving correct information about this. I also have a query about my medical bills. Since my company people accept it monthly wise/quarterly wise. I could not submit for Jan, Feb, Mar 2015. So my tax has got deducted. Can I claim the bills with ITR? Please suggest me for this problem. Thank you for your help.

  • binod049

    I wish to claim LTA FBP benefit this FY (2016-2017) for my travel that I have done in December 2015. In FY2015-2016, I didn’t declared LTA and I received the amount after tax deduction each month.

    Please help me understand if it’s possible for me to declare LTA this financial year and submit my travel proofs dated Dec 2015? I am eligible for 60,000 and have flight tickets worth Rs. 54,000.

  • Suryakant Goyal

    I have my LTA 20000/annum.I have not availed any LTA for block period of 2013-17.Shall I avail LTA in 2016-17 & 2017-18.Is it possible to avail LTA amounting 60000RS in 2016 equal to LTA of last 3 years.

    • Gaurav

      Kya baat kr rahe ho

  • Deependra Singh Chauhan

    Hi, I am getting 10000 as a LTA component. I have not claim LTA for 2014 & 2015. Now in year 2016, I want to claim the LTA with my journey. Please advice can I take benefit of tax exemption of Rs 30000( which I have not claimed from 2014-2016).
    Regards,
    Dipender

    • Varma alluri

      Yes you can claim

  • Murali Dharan

    Hi,

    I traveled by Innova from Bangalore to Delhi for 4 days with my family members like my wife, my kids and my parents, It costs me around Rs.80000 + Toll + service tax. In that 4 days i took 1 day as leave. I am eligible for 120000 per annum. Am i eligible for LTA exemption for the whole amount of Rs.80000 + Toll + service tax

  • Shruti

    Hi, according to your article I understand that cost incurred for two journeys in the block of four year can be claimed as exemption and one cannot not claim both the journeys in one year. I dint find any provision in IT Act or Rules which restrict employee from claiming exemption of two journeys in one year. Can you please refer me the rule or section which restrict the exemption to one journey in one year?

  • Sachin

    Hi,
    I have two questions related to this topic
    1. Is there any restriction on no. of days leaves to be availed to claim LTA (means whether i’ll eligible for LTA exemption if i availed leave of two days only)
    2. During these two days of leave if I travel by my own car then whether i’ll be eligible for LTA exemption for an amount equivalent to first class train fair with shortest route.

  • CHANDER SHEKHAR Khokhar

    Hi,
    i want to go to Leh in J& K using my own car, Leh is connected by air. my employer quoting rule Rule 2B read with Section-10(5) of Income Tax Act, 1961 says using own car is not permissible. i am ready for any proof of journey like fuel bills enroute toll tax slips etc.

    is the journey allowed by own car?? if yes under which rule?

  • Amit Agarwal

    hello, i want to travel from Delhi to Leh in June and want to avail LTA, when i see air fares those are very high and i want to travel through private cab which is cheaper, can i still get lat benefit if travel by taxi? also there is no trains directly to leh so cant have shortest route fare on train for comparison

  • Hiral Mehta

    Hi, i have recently joined in an organization from Jan 16, i am covered in block of 2014-2017 so now can i clam the LTA twice in 2016 & 2017 resp.?or i can claim only once in this 2 years? I have not claimed any LTA in my previous organization. Kindly guide me

    • Varma alluri

      LTA is not related to when you started
      your employment. The government fixes blocks of years. These blocks are
      not financial years (April 1 to March 31); they are calendar years
      (January 1 to December 31).

      Yes you can avail 2 journeys in 2016 and 2017.

      One LTA can be brought forward and claimed in the first year of next block.

      In case you need help reach out to us:
      Dsssvtax[at]gmail[dot]com and our experts will assist you.You can also
      call /whatsapp us : 9052535440

  • Lalit Shejao

    I haven’t declared the LTA to the organisation but want to claim the amount at the time of Filing the income tax return.
    What is the procedure or under which section should i mention it in e-Filing site.

  • Venki Tanguturi

    I’ve joined my organization in April’15, prior to which i was studying in a college. I had booked travel tickets for Mar’15. Please let me know if i would be able claim LTA for the same.

    • Varma alluri

      LTA is allowed twice in a block of four calendar years.The current block is 2014-17. So, for the period 2014-17 one can claim this exemption for any two occasions.Check with your HR or employer regarding there LTA claim calculation.

      In case you need help reach out to us:
      Dsssvtax@gmail.com and our experts will assist you.You can also
      call /whatsapp us : 9052535440.

  • Ojas Mody

    Hi sir,
    The article is quite informative and useful. However, I got some doubts, and I think you would be the right person to address them.
    1. I took 5 days leaves 3 times (total 15 days paid leave) in 2015 and went for travel. If I want to claim LTA benefit for AY 2016-17, Can I claim travel expense incurred in all 3 journeys or is that restricted to only 1 journey?
    2. My mother is getting pension income of 15000/- pm but that is consumed by loan EMIs. Can I claim she is mainly dependent on me and claim her share of travel expense as well?
    3. One of my travel started on 28th December and ended on 2nd January. If I have only 1 year left in current block, Can I claim the return ticket of 2nd January since it is related to the journey commenced on 2015?
    4. Once during last year, When I was on paid leaves, my family traveled but I could not accompany them. Can I claim their (portion of my ‘mainly’ dependent parent) travel expense under LTA? (Reason for this specific query is because this is the only travel done through air, else all were road travels.)
    Thanks in advance.
    Ojas.

  • Surinder Kumar

    we i travel by car and taken LTA leave. Fuel slips will be considered or not while claiming LTA exemption from income tax

    regards
    surinder

  • Hitesh Shah

    Your article provides a lot of good information in a easy to digest form. That’s wonderful. I have few queries as follows which I think are not covered above.
    1. Train journeys of all classes are covered
    My confusion –
    A. Can I claim it against tourist packages from IRCTC? If YES, full value of package or part of that?
    B. Can I claim it against Maharaja Express, high end tourist train packages from IRCTC ? If YES, full value of package or part of that?
    C. Air journey for economy class from any company (Air India and all private airlines) are covered, is that correct?
    2. If I go to a tour with my own vehicle for a location where train service is available, can I claim fully or part of that travel cost? If a claim is allowed, what proofs are required ?

  • Ramya

    My family planned for trip on weekdays(3 days) by our own vehicle. How can I claim LTA. Do I need apply leave as LTA or GL/EL. And how can I claim my travel exception(Fuel Bills). What and all I can claim on this trip.

  • sanjay

    i have not claimed LTA for last 10 years. can i now claim it.

  • Monalisa De

    I have LTA as a part of my salary. I have taken privilege leave on 1st week of oct – 3rd to 7th oct 2016. Now I have booked economy class air tickets for date 2nd oct and return on date 9th oct 2016 since I want to utilize the weekend clubbed before and after my privilege leave.
    My question – Now the air ticket is on weekend before my Privilege leave and return air ticket is after my Privilege leave and it is also on weekend.
    Can I get LTA for weekends (Sat/Sun) as my office is closed on weekends?

  • SUNIL KUMAR GUPTA

    IF COMPANY PROVIDE LTA AS A PART OF SALARY THEN HOW CAN I CLAIM EXEMPTION.

  • Varma alluri

    Most organisations grant employees leave travel allowance (LTA) as part of the salary package. It is exempt from tax, subject to conditions and limits. There is also no cap on the absolute amount you can claim as LTA for tax benefits.

    If you still have any tax related queries and need tax saving tips you
    can call /whatsapp us : 9052535440.write us : dsssvtax@gmail.com

  • Varma alluri

    Leave travel means you should have taken off from work by applying for
    leave (say, Privilege Leave) in your organization. Your leave days may
    include weekends and public holidays. However, travelling during
    weekends and public holidays alone cannot be considered as leave travel.

    If you still have any tax related queries and need tax saving tips you
    can call /whatsapp us : 9052535440.write us : dsssvtax@gmail.com

  • Varma alluri

    Please note that both the below conditions should be satisfied for you to be able to claim tax exemption on LTA.

    a. The employee should be on leave travel and

    b. The employee should be travelling along with family members.

  • Varma alluri

    Yes you need to take leave to claim LTA. Your leave days may
    include weekends and public holidays. However, travelling only during
    weekends and public holidays alone cannot be considered as leave travel.Yes you can claim fuel bills

    If you still have any tax related queries and need tax saving tips you
    can call /whatsapp us : 9052535440.write us : dsssvtax@gmail.com

  • Ramesh Oduru

    I took vacation from 1st Sep till 5th Sep. Last 3 days ( 3, 4 & 5 Sep) are public holidays and I applied leave for 2 days (1st Sep & 2nd Sep) only. Can I claim this expense under LTA?

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