Leave Travel Allowance
This query is : Resolved
03 December 2008
Hallo Expert,
My organisation is paying Rs.650/-P.M as Leave traval allowance to each employees ,problem is that we are not giving exemption to employees, this allowance is adding in the income of employees but emloyees are saying if they submit bills of travel in the office then they can get exemption or not.and what is the saction for exemption and how much amount will be exempted.
Thanks,
Rahul Rana
My organisation is paying Rs.650/-P.M as Leave traval allowance to each employees ,problem is that we are not giving exemption to employees, this allowance is adding in the income of employees but emloyees are saying if they submit bills of travel in the office then they can get exemption or not.and what is the saction for exemption and how much amount will be exempted.
Thanks,
Rahul Rana
03 December 2008
Fixed Leave Travel Allowance is fully taxable in the hands of employees.
But under section 10(5),an employee is entitled to exemption in respect of the value of travel concession or assistance received by or due to him from his employer or former employer for himself and his family in connection with his proceeding- (a) on leave to any place in India or (b) to any place in india after retirement from service or after the termination of his service. This exemption will be subject to other conditions mentioned in section 10(5).
In present case you change the nature of allowance to the benefit of employees.
But under section 10(5),an employee is entitled to exemption in respect of the value of travel concession or assistance received by or due to him from his employer or former employer for himself and his family in connection with his proceeding- (a) on leave to any place in India or (b) to any place in india after retirement from service or after the termination of his service. This exemption will be subject to other conditions mentioned in section 10(5).
In present case you change the nature of allowance to the benefit of employees.
03 December 2008
LTC generally paid on yearly basis & Block year is tax free on submission of Train/ Nationalised airlines Plain tickets,Monthly on this LTC payment cannot be tax free.So amend the salary structure accordingly to get benafits.
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