Leave Travel Allowance

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indira (Querist)
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06 November 2008 Dear all,

What is the maximum amount an employer can give as LTA to the employee. Please guide me if it has to be calculated as a percentage of basic salary.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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06 November 2008 There is no statutory limit. If you want to work out the exemopted amount, then take the farthest place in India from the work place ascertain the second AC train fare and take the family members as four. Multply fare by the number of members and estimate the LTA.

indira

indira (Querist)
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06 November 2008 Thanks Sir,
Can I also consider air travel for LTA to make it sizeable

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S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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07 November 2008 You can, but what is allowable, for tax purposes, is only telescopic Second A.C fare of train.

indira

indira (Querist)
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07 November 2008 Thank you very much sir.