Income from salary-lta

This query is : Resolved

pradeep.c (Querist)
Follow

27 December 2013 Mr.x's is a employee of XYZ pvt Ltd. the form 16 issued by XYZ pvt ltd to Mr.X does not specify about Leave Travel Allowance.

However the assessee ie. Mr.x has claimed Leave Travel Allowance in his Income Tax Return for Assessment Year 2009-10.

Is the assessee correct in claiming LTA ?
or
LTA should be claimed only when it is specified in Form 16

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

27 December 2013 Dear Pradeep,

you need to check whether the salary mentioned in Form 16 is net of LTA claim or not. Often Form 16 is issued net of LTA claim. In such a scenario, it wont appear in Form 16. Otherwise, it will reflect as an exemption under Section 10.

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

27 December 2013 so if salary is net of LTA, you need to claim it again. If it is not, then ask the employer to revise the form 16.

Upgrade to CAclubindia Pro. Subscribe Now!