LTA

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

19 January 2011 Dear All

Pls let me know Is there is any circular/judgment mentioning up to certain limit, employer need not collect the LTA bill and that is exempt even though bills not submitted.

Also what is block period of 4 years for LTA exemption. Block period consider employer to employer basis or any specified rule for that ?

Thanks

chetan soni

chetan soni (Expert)
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19 January 2011 There is no circular on this, but yes last year there was one judgement for non collection of LTA bills but the corrosponding amendment is not done in income tax rules, hence go with income tax rules.

Also note the current block is 2010, 2011, 2012 & 2013.

There is no employer to employer basis, it is specified in income tax rules.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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19 January 2011 This is not covered in any circular, but there is one supreme court judgement

Employers, while processing the conveyance and leave & travel allowance (LTA) claims of their staff, are under no statutory obligation to collect supporting evidence and furnish them to tax authorities, the Supreme Court said on Jan 21, 2009.
A bench comprising Justice SH Kapadia and Justice Aftab Alam said that assessee employers are under no statutory obligation to collect bills and details to prove that the employees had utilised the amounts obtained against these claims on travel and related expenses.
Case Details
CIVIL APPEAL NO.993 OF 2005 / WITH NO. 992 OF 2005
COMMISSIONER OF INCOME TAX & ANR. V/s LARSEN & TOUBRO LTD

Block period is LTA duration is 4 years current block is 2010-2013 during this block any time but not more then 2 times you can claim LTA

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Querist : Anonymous

Querist : Anonymous (Querist)

22 January 2011 Thanks for the Reply

I have left with one query.

For TDS and Form 16 purpose what is the role of employer . he can consider the exemption ( 4 year block)only on the basis of bills submission by employee or just declaration from employee is enough for TDS.

and also how the block is calculated ?.eg 2010 is one block but when it is considered ? from April 10 to March 11 or form jan -10 to dec-10

Thanks