Lta how many days leave

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LTA amount is tax free. Through this write-up, I want to shed light on the taxability and some other interesting relevant aspects which you as a salaried employee must keep in mind. Such exemption is limited to the extent of actual travel costs incurred by the employee. The total cost of the holidays is not covered, only the travelling cost is covered.

Travel within India only allowed- As per LTA Rules, travel has to be undertaken within India and overseas destinations are not covered for exemption. Travel cost means the cost of travel and does not include any other expenses such as food, hotel stay etc.

An individual would not be able to claim the exemption in relation to his parents, brother or sisters unless they are wholly or mainly dependent on the individual. This restriction does not apply in respect of children born before this date, and also in cases where an individual, after having one child, begets multiple children twins or triplets or quadruplets, etc. The LTA rules provide for an exemption only in respect of two journeys performed in a block of four calendar years.

The current block runs from If an individual does not use their exemption during any block on any one or on both occasions, their exemption can be carried over to the next block and used in the calendar year immediately following that block. In such cases, the journey performed to claim such exemption will not be counted for the purposes of regulating future exemptions allowable for the succeeding block.

For example, Mr. X joins an organisation on April 1, and is entitled to a LTA of Rs 30, per annum financial year X undertook a journey in December and used his exemption. However, for his LTA entitlement for , he did not undertake a journey during the calendar year He can undertake the journey in to claim the exemption in relation to the LTA. He would also be able to use the LTA benefit for two other journeys which he can undertake in the current block in relation to his LTA entitlement for future years.

Employers while assessing the travel allowance claims, do not need to collect proof of travel to submit to the tax authorities. Though it is not mandatory for employers to demand proof, they still have the right to demand documentary proof depending on its policy. The Judgement of Supreme Court has only moved the responsibility from the employer to the employee, the assessing officer can still ask for the employee to provide details of travel.

The individual however needs to keep copies for his or her own records. Such proofs are helpful at the time of the audit of the tax return of the individual. Proof of travel could be, for example, tickets, boarding passes, invoice of travel agent, duty slip etc. Here we would like also to draw attention of the employers to Circular No. During the Fringe Benefit tax FBT regime, provision of paid holidays, including travel cost to any place, stay expenses etc.

Many employers extended the paid holiday benefit instead of LTA. Now with the elimination of FBT , with effect from. April 1, , paid holiday benefit is fully taxable in the hands of employees and, therefore, employers are reintroducing the LTA element by withdrawing the paid holidays benefit. It does. If you are entitled to an LTA of Rs. In the second year you can claim the entire amount Rs. You can carry forward your Leave Travel Allowance in the situation that it has not been used.

It can be brought forward and claimed in the first year of the next block. Here we would like to mention that only one LTA can be brought forward and claimed in the first year of the next block. During that period, if you did not claim LTA or claimed it only once, then you will be allowed to carry forward one LTA to first year of next block, i.

However, if you do not claim the LTA brought forward from the previous block of in the first year of the current block 1st Jan to 31st Dec Though you can claim two journeys in a block of four years, you can claim the LTA benefit just once in a year. You cannot claim both the journeys in one year. So, while a person can get an income tax exemption for two journeys in a block of four calendar years, he can make a trip only once a year. If you make two trips in a year, you lose one. One way out is to claim one and make your spouse claim the other in case your spouse is also working.

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