Lta allowance and its claim

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 January 2013 Hello Friends,

I have one query regarding LTA.

I am getting LTA allowance as a part of My monthly salary, amount Rs. 2000.
This amount is added to my annual salary and hence it becomes taxable.

As per my knowledge LTA (Cost of actual travel) amount is claimed as rebate by an individual once in Two Year. But that is for the employee who are getting re-imbursement from their employer every 2 year for LTA. Hence the individual is showing LTA travel cost as exemption whenever he is getting it from his employer (every two).

But in my case the Employer is giving it every month as a part of monthly salary.

Hence my query is whether I can claim tax exemption every year by showing actual travel bill. Or the same law applies to me also that i can only claim LTA exemption once in 2 year.

Regards
Shailesh

@VaibhavJ

@VaibhavJ (Expert)
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16 January 2013 Hi

Same law applies to you also. However exempt allowance has to be shown from employer end and you can not claim it as exempt if it is paid as taxable on month on month basis to you.

To claim it as exempted ask your employer to not to pay such amount and carry forward & in the year end say Dec or March ask employee to submit bills of LTA & in Mar 12 pay whole amount and Treat claimed amount as exempt in form 16 & treat unclaimed as taxable.

Thanks!!

Querist : Anonymous

Querist : Anonymous (Querist)

19 January 2013 Thanks Mr. Vaibhav for answering..

i still have doubts, pls reconfirm the following:

It means i can not claim LTA exemption every year even if it is paid by employer every month as a part of salary.

I Can only claim LTA exemption once in two year even if it is paid to me every year. (in that way i am pad lta every year that is taxable, but i can claim lta only once in two year and that too for the amount of single year,however i had paid tax on continous two years)

pls reconfirm and clear the doubts..

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@VaibhavJ

@VaibhavJ (Expert)
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19 January 2013 Hi

If its paid on month on month basis then it can not be construed as reimbusement & it is taxable allowance.

LTA is allowed as taxfree twice in a block of 4 years with subject to sum conditions.

refer link for details:

https://www.caclubindia.com/forum/lta-ltc-leave-travel-allowance-concession-in-brief-233079.asp

Thanks!!

Querist : Anonymous

Querist : Anonymous (Querist)

19 January 2013 thanks Mr. Vaibhav...