Answer: As far as exemption in respect of LTA is concerned, there is no specific provisions as regards the places to which a journey can be undertaken as long as the journey is undertaken within India so there is no need for you to visit you home town to be able to claim LTA benefits.
Likewise, there is no restrictions that the journeys have to be taken in alternative years. So one can claim the benefit of LTA in respect of any two journeys during the block of four years. So, in my opinion, even both the journeys in respect of the same block of four years can be undertaken in the same year provided the employer is willing to pay the amount of LTA during the same year.
The current block of four years covers the calendar years , , and Since both these calendar years and fall in the same block, you can claim the exemption for both these consecutive calendar years in case you have not claimed the LTA exemption for and Please note the LTA benefit can only be claimed for journey undertaken to any place in India, so in respect of foreign travels, you can claim the travel expenses only for travel upto the airport from where you embark on your foreign journey for to and fro journey.
Balwant Jain is a tax and investment expert and can be reached on jainbalwant gmail and jainbalwant on twitter. Never miss a story! The Income Tax Act, provides various exemptions to salaried class apart from deductions such as LIC premium, housing loan interest etc.
While the deduction is something reduced from a total taxable income, exemption means exclusion from total taxable income. Such exemptions enable the employers to structure Cost to Company CTC of employees in a tax efficient manner. The tax exemption of leave travel allowance is not available in case you choose the new tax regime. Though it sounds simple, many factors need to be kept in mind before planning the travel for the purpose of claiming LTA exemption. Income tax provision has laid down rules with respect to claiming exemption of LTA.
The exemption is available only on the actual travel costs i. No expenses such as local conveyance, sightseeing, hotel accommodation, food, etc.
The exemption is also limited to LTA provided by the employer. For example, if LTA granted by employer is Rs 30, and actual eligible travel cost incurred by employee is Rs 20,, exemption is available only to the extent of Rs 20, and balance Rs 10, would be included in taxable salary income. No, an LTA exemption is available for only two journeys performed in a block of four calendar years.
A block year is different from a financial year and is decided by the Government for LTA exemption purposes. It comprises of 4 years each. The very first 4-year block commenced from List of block years are , , , , , , and so on. The block applicable for the current period is the calendar year Note that only those employees who receive LTA as part of their salary package can avail of this scheme.
Also, note that if you have opted for the new tax regime, you will not be eligible for this scheme. This amount must be proportionately reduced if less money is spent. If Rs 3,00, is spent, the entire Rs 1,00, shall be tax free.
This means you will be able to save Rs 30, in taxes by spending Rs 3lakhs. Therefore, this is not a very attractive scheme. If you have been intending to purchase one of the above goods and services, this tax benefit will help you. Please note that LTA rules for claiming the above have been notified in Budget As mentioned earlier, the LTA scheme was initially introduced only for the Central government employees and later on was also extended to private sector employees.
If the employees were not able to claim the deduction under the cash voucher scheme prior to the end of the financial year, the same can be done at the time of filing of Income Tax Return ITR.
However, the taxpayer should ensure that all the specified conditions mentioned above are fulfilled to claim the exemption.
The taxpayer should have the GST invoice as well as payment proof while claiming this deduction.
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