Lta exemption

This query is : Resolved

Nisha Kotian (Querist)
Follow

18 February 2014 My company pays lta amount every year in January. I have claimed exemption for 2 journeys in the block 2010-13. I have received lta for the year 2012 & 2013 in Jan 2014. Can i claim exemption of this lta received 2012 & 2013 in the ITR of F.Y. 2013-14 since income has been received in 2014.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

18 February 2014 LTA exemption comes into play in the year in which the LTA amount is received.

Since the amount has been received in the year 2013-14 exemption will be allowed in the year 2013-14 only.

Message likes : 1 times

Nisha Kotian

Nisha Kotian (Querist)
Follow

18 February 2014 Will it be considered as an exemption of the new block 2014-2017 or exemption under block 2010-2013. My company says since i have already taken 2 exemption in the last block and this lta relates to last block, the same will be taxable.

Upgrade to CAclubindia Pro. Subscribe Now!

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

18 February 2014 It will be considered in the block of 2010-2013 since you have claimed LTA of 2012 & 2013 which fall in the above block.

LTA exemption is provided in the financial year in which the LTA is received. However, we have to see the years for which LTA has been claimed.