Leave travel allowance (LTA) is a common form of tax exemption given to the employees by most employers. Though it is quite simple, it often brings about a lot of questions among those claiming exemption on it.
1. Only 2 journeys in a block of 4 years are exempt.
2. Current block 2014-2017 (Calendar years)
3. This exemption is available for air, rail and bus fare only. Taxi charges, boarding and lodging etc are not allowed as deduction.
4. Exemption is allowed only when the person claiming deduction is also travelling. If only family is travelling then deduction is not allowed.
5. Proof of travel could be, for example, tickets, boarding passes, invoice of travel agent, duty slip etc.
Bare Act for Sec 10(5).
Note:- Travel within India only allowed- Travel has to be undertaken within India and overseas destinations are not covered for exemption.
1. Only 2 journeys in a block of 4 years are exempt.
2. Current block 2014-2017 (Calendar years)
3. This exemption is available for air, rail and bus fare only. Taxi charges, boarding and lodging etc are not allowed as deduction.
4. Exemption is allowed only when the person claiming deduction is also travelling. If only family is travelling then deduction is not allowed.
5. Proof of travel could be, for example, tickets, boarding passes, invoice of travel agent, duty slip etc.
Bare Act for Sec 10(5).
Note:- Travel within India only allowed- Travel has to be undertaken within India and overseas destinations are not covered for exemption.
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