Leave travel concession-salary
This query is : Resolved
18 January 2012
Hi,
A Co follows the policy of giving yearly 50,000 per employee as leave travel concession as part of its CTC. An employee has not taken any trip during the block of 4 years. So can Rs50,000 be added to this salary on yearly basis? or LTA will be available only on reimbursement basis.
A Co follows the policy of giving yearly 50,000 per employee as leave travel concession as part of its CTC. An employee has not taken any trip during the block of 4 years. So can Rs50,000 be added to this salary on yearly basis? or LTA will be available only on reimbursement basis.
18 January 2012
If employee is not availing LTC in block years; it is fully taxable income.
If he submit proof of journey's he can get exemption to the extent he spent.
If he submit proof of journey's he can get exemption to the extent he spent.
18 January 2012
So does that mean that if one is not availing LTA benefit then the amount of LTA received as part of CTC will be taxable.?i.e it will become a part of your salary like other allowances. I am asking ths question because in many articles it is written that if u dont take the benefit, your LTA will lapse and it is not a part of your CTC. This means company will not pay you anything. ?
18 January 2012
If Rs.50,000/- is paid by employer every year as part of salary it is taxable like other allowances.
If employee submits proof of journey it is exempted twice in a block of 4 years.
If you don't avail LTA it is fully taxable allowance.
If employee submits proof of journey it is exempted twice in a block of 4 years.
If you don't avail LTA it is fully taxable allowance.
18 January 2012
Thanks Mr Kumar for your reply. Can you provide me any statutory supporting(as per laws) that proves the ststement as pale reading of the section is not clearing the issue.and i have to show to my Co also.
19 January 2012
Please visit following links, you will get broad idea.
http://taxguru.in/income-tax/taxability-of-leave-travel-allowance-lta-and-relevant-aspects-to-keep-in-mind.html
http://law.incometaxindia.gov.in/Directtaxlaws/act2005/sec_010(5).htm
http://taxguru.in/income-tax/taxability-of-leave-travel-allowance-lta-and-relevant-aspects-to-keep-in-mind.html
http://law.incometaxindia.gov.in/Directtaxlaws/act2005/sec_010(5).htm
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