Leave travel allowance

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 March 2014 An employee receives LTA of Rs. 10,000/- p.a. during the calender block from 2010-2013.

First he was travelled in 2011 and claimed Rs. 20,000/- by receiving 2 years LTA amount.

Secondly he had travelled in 2013 and claimed again Rs. 20,000/- of 2 years. So he claimed total LTA of Rs. 40,000/- during 2011 & 2013 travelling.

So is this calculation is correct.

Request your early reply.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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08 March 2014 your calculation correct. Ensure that only cost of ticket fare only allowable under LTA exemption

Querist : Anonymous

Querist : Anonymous (Querist)

10 March 2014 Thanks for responding sir,

Sir, my query is that whether all 4 years sum of Rs. 40,000/- is tax free if it is taken in 2 years leaves instead of 4 years leaves separately.

As per Income tax act , 2 out of 4 journeys LTA expenses are tax free and rest 2 are taxable. But suppose an employee only takes 2 leaves in 4 years but claiming all 4 years LTA as exempt.

Please clarify it.

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