- Jan 27, 2020 Exemption of Fare Only As per LTA Rules, LTA exemption can be claimed where the employer provides LTA to employee for leave to any place in India taken by the employee and their family. Such exemption is limited to the extent of actual travel costs incurred by the employee.
- 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. Exemption of Fare Only - LTA exemption can be claimed where the employer provides LTA to employee for leave to any place in India taken by the employee and their family.
- Leave Travel Allowance (LTA ) is one of best Tax saving tools available to employees. As per the Rules, you can claim the LTA benefit only twice during the block of 4 years. For this purpose, following condition should be satisfied: You should be on leave. You should travel any where in India. During such travel you may have your family with you.
- Leave Travel Allowance (LTA) is an actual expense based allowance provided to an employee for travelling within India during the leave period. It is also referred to as Leave Travel Concession (LTC). This allowance can be in form of: Reimbursement of Travel Expenses.
Cadbury India under lens for alleged excise evasion
New Delhi, November 4
Confectionery firm Cadbury India Limited has come under the scanner of financial intelligence sleuths for alleged excise duty evasion of about Rs 100 crore. In an inquiry being conducted by the Department of Revenue, the firm was allegedly found to have wrongfully claimed 'area based exemption' for its new unit at Baddi in Himachal Pradesh, official sources said.
Tax Advice
Tax returns filing for pensioners
Q: I am a senior citizen retired on April 30, 1999 and received pension that was never taxable in the previous years. Following a high court order, my pension has been revised with effect from May 1, 1999. I shall be receiving arrears of Rs 260,000 this year. The amount will be between Rs 12,000-36,000 for the period 1999-2000 to 2012-2013. My pension for FY2012-13 will come to Rs 204,000. What can I do to save on taxes?
No case for lowering India's credit rating: PMEAC chief
Mumbai, November 4
The prime minister's key economic advisor has said that there is no case for lowering India's credit rating and the global agencies need to look at the international scenario before taking any rating action. 'The rating agencies also need to recognize the fact, we have taken some strong actions in the recent period ... therefore I believe the rating agencies don’t have a strong basis for reducing the rating of India,' PM’s Economic Advisory Council (PMEAC) chairman C. Rangarajan told PTI.
Read about the Leave Travel Allowance (LTA) that is provided to the employees for travelling. The exemption is restricted to fare cost for touring in India. The Leave Travel Allowance is an allowance given by the employers to their employees, which can be utilised when they go for a vacation.
Stock-specific action to dictate markets this week
Mumbai, November 4
Equity markets are likely to see stock-specific action this week in view of earnings from a slew of blue chips, including Bharti Airtel, Tata Motors and SBI amid volatile trading due to global events, analysts say. Major corporate result announcements this week include Cipla, Tata Power, Reliance Infrastructure, Hindalco, Bharti Airtel, Tata Motors, Sun Pharmaceuticals Industries, ONGC, Ranbaxy, Tata Steel, Jindal Steel & Power, Coal India and SBI.
Growth to revive from FY14 on reforms impact: Morgan Stanley
New Delhi, November 4
India is expected to register a gradual recovery in growth rate in the next fiscal year helped by big-bang reforms and speeding up of farm growth output on account of base effect, Morgan Stanley has said in a report.
Punjab to develop area specific industrial clusters
Gurgaon, November 4
Punjab Deputy Chief Minister Sukhbir Singh Badal said Sunday his state was all set to develop area specific industrial clusters depending on the strengths. Speaking at the Invest North conclave organized by CII, he pitched for developing the state as the next big industrial hub. He said Punjab aimed to attract at least Rs 1 lakh crore investments in the next four years.
Personal finance
The ins and outs of LTA benefits
There are two circumstances in which income tax exemption for leave travel assistance can be claimed - when you are continuing in your current job and proceed on leave to any place in India and when you travel to any place after you retire or are fired.
The whole objective of travel is not to set foot on foreign land - it is finally to set the foot on one's own country as a foreign land. - G.K. Chesterton
This quote sums up the importance and enjoyment of exploring your own country as a foreign land.
Family budget planning tools
We all are aware that on the last day of every February the finance minister presents budget in Parliament. The exercise is done months before and, on the budget day, minister makes it public, where the money has come from and how it is spent in the current year. The budget also tells us what the estimates are for the next financial year.
Leave Travel Allowance
Leave Travel Allowance (LTA ) is one of best Tax saving tools available to employees.
As per the Rules, you can claim the LTA benefit only twice during the block of 4 years. For this purpose, following condition should be satisfied:
- You should be on leave.
- You should travel any where in India.
- During such travel you may have your family with you.
- LTA is part of your salary component.
Family includes spouse, children as well as dependent parents, brothers and sisters.
In respect of children born on or after 1.10.98, the exemption will be restricted only to two surviving children unless the birth after one child has resulted in multiple births.
The travel expense incurred by you is exempt up to the LTA received.
Obviously, if your wife and other family members travel, without you accompanying them, no LTA can be claimed.
FAQ on claiming LTA benefit and Income tax planning is answered below:
1. Can we Claim LTA Every Year? Sumit, Delhi
One of the most common questions about LTA is whether it can be claimed every year or not? The answer is Yes – you can claim LTA every year, but you will not be able to claim LTA exemption ever year.
Other Points About Tax On LTA
a) If you do not wish to claim LTA in one particular year you can have your employer carry forward your LTA for the next year.
2. Is entire cost of travel covered under LTA? Jaya , Bangalore
A The entire cost of the holiday is not covered. Only the travel costs are covered. So, whether you fly, hop on to a train or take public transport, you will have to show the ticket to claim your LTA. This means you will need to keep your air, rail or public transport ticket.
Also LTA benefit is limited to LTA given by your employer in your salary.
3. Can I claim LTA for my elder Brother? Ramesh , Amritsar
A LTA covers travel for yourself and your family. Family, in this case, includes yourself, parents, siblings dependent on you, spouse (even if your spouse is working) and children.
For children born after October 1, 1998, the exemption is restricted to only two surviving children (unless, of course, one birth has resulted in multiple children like twins and triplets).
If your family travels without you, no LTA can be claimed. You have to make the trip, either by yourself or, if claiming for your family, you should travel with them.
4. What is Concept of Block years for getting LTA benefit? Sunil, Pune
A LTA is not related to when you started your employment. The government fixes blocks of years. These blocks are not financial years (April 1 to March 31); they are calendar years (January 1 to December 31).
The current block is 2010-13 — January 2010 to December 2013.
During this time period, a person is entitled to two LTA claims.
5. I was not able to claim Leave in last block. Can I claim it now? Venkat, Kerala
A You can carry forward your LTA. One LTA can be brought forward and claimed in the first year of the next block.
Let’s say you do not take your LTA in 2006-09. Or that you use only one LTA. Don’t worry, you will be able to take the pending LTA in 2010. This means that, in the 2010-13 block, you will be totally entitled to the three journeys.
6. I am entitled for LTA of Rs 45000/- but I have made travel of Rs 25000 /-. How can I claim balance? Kamal, Gurgaon
A If your LTA is not utilised, it gets added to your salary and you will be taxed on it.
Rs 20000/- short utilised would be paid as normal part of your salary after deducting income tax as per your Income tax slab.
7. I have changed job and i was not able to claim LTA for last year? Can i do it now? Satish, Banglore
A If you switch jobs, you can get the LTA not only from your present organisation but also from your former employer, if the concession is lying unutilized.
For example: in the 2006-09 block, you claimed LTA in 2007. In 2008, you switched jobs. You can still claim your second journey with your new employer. Of course, your new employer will ask to look at your earlier tax returns to see whether it has been claimed or not.
8. I performed journey by plane. Will I get LTA benefit? Puneet, Mumbai
A In case of journey performed by air, then you can get the LTA benefit for :Economy Air fair of National carrier by the shortest route or the amount spent which ever is less.
Lta Slot India Share Price
9. I performed journey by first Class Rail . Will I get LTA benefit? Amit, Mumbai
A In case of journey performed by rail, then you can get the LTA benefit for : A.C. first class rail fare by shortest route or amount spent which ever is less.
10. What if Place of origin and destination place of journey connected by rail but journey performed by other mode of transport.. Will I get LTA benefit? Amit, Mumbai
A Amount exempted for LTA will be – A.C. first class rail fare by shortest route or amount spent which ever is less.
Lta Slot India Online
11. Can a holiday package be claimed for LTA exemption? Rahul, Gurgaon
A Holiday package can be claimed for LTA exemption.
LTA exemption can be claimed only for travel – if your holiday package included hotel and sightseeing (which it normally does) – you won’t be able to take an exemption for that.
Also, LTA exemption can be availed for family – ie your spouse, dependent children, dependent brothers or sisters only, so if you have taken a holiday with your extended family or children who are no longer dependent on you, then you can’t claim LTA exemption on that part of the expense.
12. Can both husband and wife claim LTA exemption ? Manish, Ahmedabad
A If you and your wife both get LTA – both of you can’t claim exemption for the same travel but you can avail LTA benefit for different travel.
So effectively between the two of you, you can claim exemptions four times in four years.