LTA

Leave Travel Concession – Income Tax Exemption

Income Tax - Government has recently made an announcement on 29th October, 2020 in continuation to an earlier announcement made vide Office memorandum F.No. 12(2) /2020-EII (A) dated 12th October, 2020, that all non-central government employees will be eligible for income tax exemption for the entire leave travel concession amount maximum up to Rs 36,...

Read More

Special Cash Package Scheme In Lieu of LTC for Government Employees

Income Tax - 1. The Government vide office memorandum no. F.No. 12(2)/2020—EH(A) dated 12 October 2020 announced the Cash Voucher LTC (Leave Travel Scheme) scheme for Government employees. 2. What is LTC Scheme? The Leave Travel Scheme is assistance received by the employee from his employer for traveling on leave. The employee and family can visit ...

Read More

Conditions for exemption of Leave Travel Assistance / Allowance / Concession (LTA)

Income Tax - Leave Travel Assistance / Allowance / Concession (LTA) Leave Travel Concession / Assistance / Allowance (LTA) is generally paid as a part of salary to employee for his travel on his planned leaves with / without his family. The amount paid by the employer to employee is exempt from tax subjected to conditions which is […]...

Read More

Basic Components of Salary and its Taxation

Income Tax - CTC is cost to company and the components are Basic +HRA +Conveyance +Mobile/Telephone Expense Reimbursement +Medical Reimbursement +All allowances +Leave Travel Allowance (LTA)....

Read More

Supporting for claim of Leave Travel Concession (LTA) – Mandatory?

Income Tax - LEAVE TRAVEL CONCESSION UNDER SECTION 10(5) OF INCOME TAX ACT,  1961: The amount exempt under section 10(5) for LTA/LTC is the value of any travel concession or assistance received or due to the assessee from his employer for himself and his family in connection with his proceedings on leave to any place in India. Exemption […]...

Read More

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 ...

Read More

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....

Read More

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...

Read More

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....

Read More

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...

Read More

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...

Read More

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...

Read More

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). ...

Read More

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...

Read More

FAQs on LTC Cash Voucher Scheme

No. 12(2)/2020-E.II(A) - (20/10/2020) - Clarification regarding queries being received in respect of Special cash package equivalent in lieu of Leave Travel Concession Fare for Central Government Employees during the Block 2018-21....

Read More

Misinterpretation of LTC stimulus and its benefits

NA - (13/10/2020) - A report has appeared in the Economic Times Markets (ETMarkets.com) which gives the impression that the LTC voucher scheme for Government employees may not be attractive. Unfortunately, the piece which it relies on has a serious factual error in its understanding of how Government LTC works....

Read More

FM announces measures of Rs 73,000 crore to stimulate consumer spending

Release ID: 1663722 - (12/10/2020) - Finance Minister announces measures of Rs 73,000 crore to stimulate consumer spending before end of this Financial Year in fight against COVID-19. Cash payment and leave encashment in lieu of one LTC during 2018-21 according to entitlement. Special Festival Advance Scheme revived as a one-time measu...

Read More

FM announces Stimulus to boost Demand in Economy: Highlights

(Release ID: 1663675 - (12/10/2020) - Under LTC Cash Voucher Scheme, the Government has decided to give cash payment to employees in lieu of one LTC during 2018-21, in which full payment on Leave encashment and tax-free payment of LTC fare in 3 flat-rate slabs depending on class of entitlement will be given....

Read More

Recent Posts in "LTA"

Leave Travel Concession – Income Tax Exemption

Government has recently made an announcement on 29th October, 2020 in continuation to an earlier announcement made vide Office memorandum F.No. 12(2) /2020-EII (A) dated 12th October, 2020, that all non-central government employees will be eligible for income tax exemption for the entire leave travel concession amount maximum up to Rs 36,...

Read More
Posted Under: Income Tax |

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

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 ...

Read More
Posted Under: Income Tax |

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 name of spouse or any family member who...

Read More

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

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....

Read More
Posted Under: Income Tax |

FAQs on LTC Cash Voucher Scheme

No. 12(2)/2020-E.II(A) (20/10/2020)

Clarification regarding queries being received in respect of Special cash package equivalent in lieu of Leave Travel Concession Fare for Central Government Employees during the Block 2018-21....

Read More

Misinterpretation of LTC stimulus and its benefits

NA (13/10/2020)

A report has appeared in the Economic Times Markets (ETMarkets.com) which gives the impression that the LTC voucher scheme for Government employees may not be attractive. Unfortunately, the piece which it relies on has a serious factual error in its understanding of how Government LTC works....

Read More

Special Cash Package Scheme In Lieu of LTC for Government Employees

1. The Government vide office memorandum no. F.No. 12(2)/2020—EH(A) dated 12 October 2020 announced the Cash Voucher LTC (Leave Travel Scheme) scheme for Government employees. 2. What is LTC Scheme? The Leave Travel Scheme is assistance received by the employee from his employer for traveling on leave. The employee and family can visit ...

Read More
Posted Under: Income Tax |

FM announces measures of Rs 73,000 crore to stimulate consumer spending

Release ID: 1663722 (12/10/2020)

Finance Minister announces measures of Rs 73,000 crore to stimulate consumer spending before end of this Financial Year in fight against COVID-19. Cash payment and leave encashment in lieu of one LTC during 2018-21 according to entitlement. Special Festival Advance Scheme revived as a one-time measure for both Gazetted and non-Gazetted em...

Read More

FM announces Stimulus to boost Demand in Economy: Highlights

(Release ID: 1663675 (12/10/2020)

Under LTC Cash Voucher Scheme, the Government has decided to give cash payment to employees in lieu of one LTC during 2018-21, in which full payment on Leave encashment and tax-free payment of LTC fare in 3 flat-rate slabs depending on class of entitlement will be given....

Read More

LTC for Central Government Employees during Block 2018-21

F. No. 12(2)/2020-EII(A) (12/10/2020)

It has been decided that cash equivalent of LTC, comprising Leave Encashment and LTC fare of the entitled LTC may be paid by way of reimbursement, if an employee opts for this in lieu of one LTC in the Block of 2018-21 subject to the following conditions:-...

Read More

Conditions for exemption of Leave Travel Assistance / Allowance / Concession (LTA)

Leave Travel Assistance / Allowance / Concession (LTA) Leave Travel Concession / Assistance / Allowance (LTA) is generally paid as a part of salary to employee for his travel on his planned leaves with / without his family. The amount paid by the employer to employee is exempt from tax subjected to conditions which is […]...

Read More
Posted Under: Income Tax |

Basic Components of Salary and its Taxation

CTC is cost to company and the components are Basic +HRA +Conveyance +Mobile/Telephone Expense Reimbursement +Medical Reimbursement +All allowances +Leave Travel Allowance (LTA)....

Read More
Posted Under: Income Tax |

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 employees […]...

Read More

Supporting for claim of Leave Travel Concession (LTA) – Mandatory?

LEAVE TRAVEL CONCESSION UNDER SECTION 10(5) OF INCOME TAX ACT,  1961: The amount exempt under section 10(5) for LTA/LTC is the value of any travel concession or assistance received or due to the assessee from his employer for himself and his family in connection with his proceedings on leave to any place in India. Exemption […]...

Read More
Posted Under: Income Tax |

Clarification regarding relaxation of purchase of air tickets from authorized Travel Agents for LTC

Office Memorandum No. 43020/2/2016-Estt (A.IV) (19/02/2020)

Procedure for booking of air-tickets on LTC and to say that as per the extant instructions, whenever a Government servant claims LTC by air, he/she is required to book the air tickets directly from the airlines (Booking counters, website of airlines) or by utilizing the services of the authorized travel agents...

Read More

Taxability of Leave Travel Allowance (LTA) | Section 10(5)

Leave Travel Allowance (LTA) is the most common element of compensation adopted by employers to remunerate employees due to the tax benefits attached to it. 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 t...

Read More
Posted Under: Income Tax |

Income Tax Treatment of Leave Travel Allowance (LTA)

We go on travel with our family and if we can get tax benefits on such traveling expenses, than why waste to it. This Article on Leave Travel allowance or LTA explains how to claim LTA benefit and Income Tax Provisions related to the same....

Read More
Posted Under: Income Tax |

Want to Save Income Tax- Ask Your Employer to Include LTA in CTC

LTA (Leave Travel Allowance) is one of the salary components known to all of us but very few including the HR people have clarity on the exemption on account of LTA. Let’s have a clarity capsule on LTA & know the facts about LTA we all should know: This exemption is allowed for expenses pertaining […]...

Read More
Posted Under: Income Tax |

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 clause it had been stated […]...

Read More

Useful tips to save Income Tax in F.Y. 2018-19

Tax Planning is most important part of Finance Planning for Tax Payers In India especially for Individual and Salaried tax Payers. In this Article we are discussing some Tax Planning Tips mainly for Individual and Salaried tax payers by which they can minimise their tax burden for Financial Year 2018-19 or Assessment year 2019-20...

Read More
Posted Under: Income Tax | ,

Leave Salary encashment Exemption, Calculation, Download calculator

Earned leave means the leave accrued to the employee in proportion of the work done by him. This varies from employer to employer. For example in government sector, the earned leave is 2.5 days for every month worked. This 2.5 days is granted with a view to provide him rest to enable him to recover from the stess and strain endured by ...

Read More
Posted Under: Income Tax |

Tax Treatment of Leave Encashment Salary

1. In the case of continuity of services. Government/Non-Government employee - Leave encashment during Continuity of employment - It is chargeable to tax. However relief can be taken under section 89 -As per Income Tax Act, 1961 u/s 10(10AA) ...

Read More
Posted Under: Income Tax |

Most Popular Exempt Allowances for Salaried Employees

Salaried Employees can avail the benefit of various exemptions with respect to the allowances given by their employers during their tenure of service like House Rent Allowance, Gratuity Allowance, Leave Encashment, Conveyance/Transport Allowance, Lea...

Read More
Posted Under: Income Tax |

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

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...

Read More
Posted Under: Income Tax |

DTC: LTA may be exempted

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....

Read More
Posted Under: Income Tax |

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

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...

Read More
Posted Under: Income Tax |

No LTA for government staff using personal car or taxi as mode of transport

The government will not sanction leave travel allowance for an employee who uses personal car or taxi as mode of transport.However, the rule shall not be applicable to employees with a handicap or disability of self or dependent family member. According to a government notification, the employees can avail the LTA only if they travel by I...

Read More
Posted Under: Income Tax |

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). For the above reasons there is no merit ...

Read More

Browse All Categories

CA, CS, CMA (5,054)
Company Law (6,720)
Custom Duty (8,088)
DGFT (4,389)
Excise Duty (4,412)
Fema / RBI (4,453)
Finance (4,699)
Income Tax (35,143)
SEBI (3,759)
Service Tax (3,628)

Search Posts by Date

December 2020
M T W T F S S
 123456
78910111213
14151617181920
21222324252627
28293031