LTA

Understanding the LTA & its benefits

Income Tax - Leave Travel Allowance (LTA) First, we need to understand the concept of Leave Travel Allowance Related Rules and Exemption Guide then we can claim for this allowance. What is LTA? LTA stands for leave travel allowance. This allowance is provided by the employer to cover the travel expenses of the employee when he is gone […]...

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LTC Exemption of Rs. 36000 per family member For FY 2020-21 also available to non-Government Employees

Income Tax - Income Tax Exemption of Rs. 36,000 per family member to a Salaried person for the Financial year 2020-2021 (also available to Private Sector Employees) Many Salaried employees get Leave Travel Concession (LTC) from their Employers which is exempt to the extent it is actually spent on travelling. LTC which could not be spent is taxable [&h...

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LTC (Leave Travel Concession) Cash Voucer Scheme

Income Tax - Government in Budget 2021 notified Leave Travel Concession (LTC) cash Voucher scheme. In view of the situation arising out of outbreak of COVID pandemic, it is proposed to provide tax exemption to cash allowance in lieu of LTC. Initially, the scheme was announced in October 2020 for Central Government Employees and later via a press [&hel...

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Claim LTA Exemption without travelling!

Income Tax - Central Government has come up with a new scheme providing for some relief to employees in the country. As we all know, due to COVID-19 pandemic, people are not in a position to travel, and the employees earning Leave Travel Allowance (LTA) are unable to claim the respective exemption. So, keeping a view to let […]...

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Leave Travel Concession Section (LTC/LTA) 10(5) of Income Tax Act, 1961

Income Tax - The Income Tax Act 1961 provides certain exemption from salaries apart from deduction from Chapter VI A. Exemptions refers to certain part of salary is not considered as a income while calculating taxable Income. Deductions means a certain amount of saving or Expenditure for Specific reason is allowed to deduct from your Gross Taxable Inc...

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COVID 19 Ex Gratia to borrowers for difference in interest : FAQs

Income Tax - The bank/ lending institution will provide ex gratia payment to the borrower account of the difference between compound interest and simple interest on loan accounts with sanctioned limits and outstanding upto Rs. 2 crores (aggregate of all the borrowings / facilities from all the banks and financial Institutions) for the period from 1st ...

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Income-tax Exemption on deemed LTC fare for non-Central Government employees

Income Tax - In order to provide the benefits to other employees (i.e. non-Central Government employees) who are not covered by the above mentioned OM, it has been decided to provide similar income-tax exemption for the payment of cash equivalent of LTC fare to the non-Central Government employees also....

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Leave Travel Concession- Replace “Calendar year” by “Financial year”: ICAI

Income Tax - As per the provisions of section 10(5) of the Income-tax Act, 1961, an exemption of the value of leave Travel Concession/Assistance received by the employee from his employer is provided subject to fulfillment of prescribed conditions. Rule 2B provides for the specified conditions to be fulfilled. One of the conditions is that the exempti...

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DTC: LTA may be exempted

Income Tax - The government may allow the Leave Travel Allowance (LTA) to be exempted from taxation once the Direct Tax Code (DTC) comes into effect. The directive to this extent will figure in the rules to be framed by the finance ministry after the DTC is passed by Parliament....

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DTC: Bad news for Salaried- Leave travel Allowance (LTA) not available

Income Tax - Salaried taxpayers may have less kitty for holidays from April 2012, with the government proposing to scrap tax incentives on leave travel allowance in the new direct tax regime DTC. The Direct Taxes Code (DTC) bill, which was tabled in the Lok Sabha yesterday, seeks to do away with leave travel concession (LTC) from its list of exemption...

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Section 10(5) read with rule 2B not indicate any requirement of taking shortest route

State Bank of India Vs ACIT (ITAT Mumbai) - State Bank of India Vs ACIT (ITAT Mumbai) A plain reading of the section 10(5) read with rule 2B does not indicate any requirement of taking the shortest route for travelling to “any place in India” or putting any kind of restrictions the route to be adopted for going to such a destinati...

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No Penalty for TDS Default due to reasonable cause on Foreign LTC Paid to Staff

State Bank of India Vs ACIT (ITAT Bangalore) - State Bank of India Vs ACIT (ITAT Bangalore) The assessee is a banking institution. A survey u/s 133A of the Act was conducted in the hands of the assessee in order to verify compliance of TDS provisions. It was noticed that the assessee has provided LTC facility to its employees and some of the emp...

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Leave Travel Concession not available on Foreign Travels

Shri Rajeshkumar Navnitlal Dani Vs ITO (ITAT Ahmedabad) - Shri Rajeshkumar Navnitlal Dani Vs ITO (ITAT Ahmedabad) Provision of sec. 10(5) of the Act only that reimbursement of travel concession or assistance to an employee is exempted which was incurred for travel of the individual employee or his family members to any place in India and nowhere in this cl...

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Proof of travel not required for claiming LTA: SC

Commissioner Of Income Tax Vs M/S Larsen & Toubro Ltd (Supreme Court of India) - It may be noted that the beneficiary of exemption under Section 10(5) is an individual employee. There is no circular of Central Board of Direct Taxes (CBDT) requiring the employer under Section 192 to collect and examine the supporting evidence to the Declaration to be submitted by an employee(s). ...

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CBDT notifies rules for LTC Cash Voucher Scheme

Notification No. 50/2021-Income Tax [G.S.R. 320(E)] - (05/05/2021) - CBDT notifies rules for LTC (Leave Travel Concession) Cash Voucher Scheme [Section 10(5)] vide which LTC Exemption of Rs. 36000 per family member For FY 2020-21 available to Employees of Both Private & Government Sector. Rules are notified vide Notification No. 50/2021-Income Tax Dated: 5th May,...

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Clarification on full & final settlement of claims pertaining to LTC Special Cash Package Scheme

Office Memorandu, No. 12(2)/2020-E.II(A) - (30/03/2021) - Keeping in view of practical difficulties in submission of bills/claims for purchases made particularly in late hours of 31st March, 2021(including on-line purchases), it is clarified that submission of bills/claims may be entertained and settled by Ministries/Departments not later than 30th April H...

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4th FAQs on LTC Cash Voucher Scheme

Notification No.12(2)/2020/E-II.A - (10/03/2021) - Whether the full and final settlement of the bills pertaining to LTC Cash Scheme is also to be ensured by 31st March, 2021, without any scope of spill over to the next financial year? As far as possible, the claims should be made and settled well before 31st March, 2021, Ministries/Departments may c...

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LTC: Reimbursement of cancellation/reschedule charges for air/train tickets

Notification No. 31011/1/2020-Estt (A.IV) - (07/01/2021) - No. 31011/1/2020-Estt (A.IV) Government of India Ministry of Personnel, Public Grievances and Pensions Department of Personnel and Training (Establishment A-IV Desk) North Block, New Delhi-110001 Dated: 7 January, 2021 OFFICE MEMORANDUM Subject:-Reimbursement of cancellation/reschedule charges for a...

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Special Cash Package equivalent in lieu of Leave Travel Concession Fare- Reg.

F. No. 12(2)/2020-EII(A) - (04/11/2020) - (i) the advance taken under the Special Cash Package equivalent in lieu of Leave Travel Concession Fare for Central Government Employees during the Block 2018-2021 shall be settled on or before 31st March, 2021, and (i) the invoices of the goods and services purchased as per the scheme may be in the...

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Recent Posts in "LTA"

Understanding the LTA & its benefits

Leave Travel Allowance (LTA) First, we need to understand the concept of Leave Travel Allowance Related Rules and Exemption Guide then we can claim for this allowance. What is LTA? LTA stands for leave travel allowance. This allowance is provided by the employer to cover the travel expenses of the employee when he is gone […]...

Read More
Posted Under: Income Tax |

LTC Exemption of Rs. 36000 per family member For FY 2020-21 also available to non-Government Employees

Income Tax Exemption of Rs. 36,000 per family member to a Salaried person for the Financial year 2020-2021 (also available to Private Sector Employees) Many Salaried employees get Leave Travel Concession (LTC) from their Employers which is exempt to the extent it is actually spent on travelling. LTC which could not be spent is taxable [&h...

Read More
Posted Under: Income Tax |

CBDT notifies rules for LTC Cash Voucher Scheme

Notification No. 50/2021-Income Tax [G.S.R. 320(E)] 05/05/2021

CBDT notifies rules for LTC (Leave Travel Concession) Cash Voucher Scheme [Section 10(5)] vide which LTC Exemption of Rs. 36000 per family member For FY 2020-21 available to Employees of Both Private & Government Sector. Rules are notified vide Notification No. 50/2021-Income Tax Dated: 5th May, 2021 by inserting Sub-Rule 1A & IB ...

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Clarification on full & final settlement of claims pertaining to LTC Special Cash Package Scheme

Office Memorandu, No. 12(2)/2020-E.II(A) 30/03/2021

Keeping in view of practical difficulties in submission of bills/claims for purchases made particularly in late hours of 31st March, 2021(including on-line purchases), it is clarified that submission of bills/claims may be entertained and settled by Ministries/Departments not later than 30th April However, it is reiterated that the paymen...

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4th FAQs on LTC Cash Voucher Scheme

Notification No.12(2)/2020/E-II.A 10/03/2021

Whether the full and final settlement of the bills pertaining to LTC Cash Scheme is also to be ensured by 31st March, 2021, without any scope of spill over to the next financial year? As far as possible, the claims should be made and settled well before 31st March, 2021, Ministries/Departments may consider settlement of only those claims/...

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LTC (Leave Travel Concession) Cash Voucer Scheme

Government in Budget 2021 notified Leave Travel Concession (LTC) cash Voucher scheme. In view of the situation arising out of outbreak of COVID pandemic, it is proposed to provide tax exemption to cash allowance in lieu of LTC. Initially, the scheme was announced in October 2020 for Central Government Employees and later via a press [&hel...

Read More
Posted Under: Income Tax |

Claim LTA Exemption without travelling!

Central Government has come up with a new scheme providing for some relief to employees in the country. As we all know, due to COVID-19 pandemic, people are not in a position to travel, and the employees earning Leave Travel Allowance (LTA) are unable to claim the respective exemption. So, keeping a view to let […]...

Read More
Posted Under: Income Tax |

Leave Travel Concession Section (LTC/LTA) 10(5) of Income Tax Act, 1961

The Income Tax Act 1961 provides certain exemption from salaries apart from deduction from Chapter VI A. Exemptions refers to certain part of salary is not considered as a income while calculating taxable Income. Deductions means a certain amount of saving or Expenditure for Specific reason is allowed to deduct from your Gross Taxable Inc...

Read More
Posted Under: Income Tax |

Section 10(5) read with rule 2B not indicate any requirement of taking shortest route

State Bank of India Vs ACIT (ITAT Mumbai)

State Bank of India Vs ACIT (ITAT Mumbai) A plain reading of the section 10(5) read with rule 2B does not indicate any requirement of taking the shortest route for travelling to “any place in India” or putting any kind of restrictions the route to be adopted for going to such a destination. Quite to […]...

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Exemption for LTC Cash Scheme under Budget 2021

Under the existing provisions of the Act, clause (5) of section 10 of the Act provides for exemption in respect of the value of travel concession or assistance received by or due to an employee from his employer or former employer for himself and his family, in connection with his proceeding on leave to any […]...

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Posted Under: Income Tax |

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