One of my Customer has an query related to availing LTA exemption for this year fy 2012-13.
Travel date and travelers details as below.
18-Oct-2012- His mother and father travel from CHIRALA (Native) TO BANGALORE via train and the fare was - 340. 18-Oct-2012 his wife and 2 daughter also travel from Bangalore to Delhi via airline with fare of 12930. 19-Oct-2012 his parents travel from Bangalore to Delhi via train and fare was Rs. 2840. 21-Oct-2012 along with his parents, Wife and daughter he also travel from H Nizamudin to Udaipur via train and on 24-Oct-2012 from Udaipur to Mumbai and the total cost of travel was Rs. 8285. 26-Oct-2012 along his family members he travel from Mumbai to Begampet that cost him Rs. 7895 via train. 28-Oct-2012 along his wife and daughter he traveled from Begampet to Bangalore which cost him Rs. 1303. 28-Oct-2013 his Parents travelled from Secundrabad to Chirala which costed him Rs.696.
Note: He was on leave officially from 22-Oct-2012 to 25-Oct-2012. though the 21-oct-2012 was on Sunday he started his journey from 21-Oct-2012.
Kindly help me in calculating the LTA exemption for this FY 2012-13.
27 February 2013
First of all, employee should be a part of travel to avail tax benefit for LTA. So travel made by his family member without accompany him would not be considered for tax exemption at all and would be fully taxable.
As per your message he was on legal leave from 22 Oct to 25th only (Please clarify), in this case his travel made on 26 & 28 Oct would also not qualify for tax exemption.
Hence, travel made on 21st Oct only would be considered for exemption of LTA. Also as the travel is made in circular route, cost of travel from H Nizamuddin to Mumbai (Subject to maximum of 1st class rail fare) would be exempted.
CAclubindia
