23 February 2009
Dear friends, to one of our employee we have given LTA like below:- in 2006 - Rs. 25000/- in 2007 - Rs. 25000/- in 2008 - Rs. 25000/- in 2009 - Rs. 25000/-
he will be eligible for exemption of Rs. 50000/- or Rs. 100000/-?
23 February 2009
Neither 50000/- nor 100000/-. He just will be able to claim exemption from amount received as follows: if he travelled by air- amount equal to economy class fare of a national carrier. By rail- amt = first class fare by any other transport utility - amt of shortest possible route. So say, if he travelled by air and amount comes to 22500/-, 25000-22500(exemption)=2500/-(amt.taxable). If the amt spent is more than amt will be restricted to amt.recd.
CAclubindia
