LTC: TDS deductible on reimbursement to staff for foreign travel leg

State Bank of Bikaner and Jaipur (Now SBI) Vs ITO (TDS) (ITAT Jaipur)

 ITO(TDS) referring to the provisions of Section 10(5) of the Income Tax Act and Rule 2B of Income Tax Rules, 1962 held that the exemption for LTC/LFC is available only for visit to any place in India, 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. Therefore, the assessee bank was held as “assessee in default” for not deducting the TDS on the reimbursement to the extent of journey

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