Leave Travel Assistance U/s 10(5)

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Dhruva Kumar (Querist)
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25 February 2010 Dear Sir/ Madam,
Am a student pursuing PCC. I have a doubt with regard to Section 10(5) about claiming the Leave Travel Assistance.

An employee is provided with the benefit of Leave Travel Assistance, wherein the expenses will be reimbursed by the employer. The employee can avail the benefit twice in a block of 4 calendar years as per our IT act, which u know.

The employee's block is finished on 31/12/09 being block of 4 calendar years 2006-09. The employee is availing this benefit in the month of Feb'2010. I have refered to the IT Act, where I could find that' "If an employee has not availed the benefit twice in any block, the first leave travel assistance which he will be availing in the next immediate block will be taken as if that benefit is of the previous block. The act specified limits (i.e the fare of shortest route), but I could not find whether in this case the total amount of the LTA can be exempted or not if the employee has to file his individual return for the A.Y 10-11.

One of my senoir has said that, since his availment is in the next successive block, he can only avail either of the "to" charges or "return" charges (going charges or return charges) any one way travelling charges. I could not find any such clause or any case law like that.

Kindly help me with this regard.
The reply is in urgency.

Lekh Sood

Lekh Sood (Expert)
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25 February 2010 As per rule 2B(3),the LTA availed under the circumstances stated in the query can be exempted for the FY 2009-10.
I also could not find any support to the view expressed by your senior.