LTA DEDUCTION amount
This query is : Resolved
25 October 2024
Can Deduction w.r.t. LTA be allowed for travelling through hired vehicles say for example a traveller booked for entire family? Or it can be claimed only for journeys via bus, air or railway?
What are the conditions to claim this deduction?
What are the conditions to claim this deduction?
25 October 2024
According to Rule 2B of the Income-tax Rules, 1962 (Rules), only travel expenses (air/rail/road) for the shortest route between origin/base location and destination will be exempt from tax, subject to the following limits:
a) In case the journey is performed by air: Economy airfare of the national carrier for the shortest route or the amount spent, whichever is less
b) In case the place of origin of the journey and destination are connected by rail but the journey is performed by any mode of transport other than air: Air conditioned first class rail fare for the shortest route or amount spent, whichever is less
c) In case the place of origin of the journey and destination are not connected by rail:
i) Where a recognized public transport system exists: 1st class or deluxe class fare on such transport by the shortest route to the place of destination; and
ii) Where no recognized public transport system exists: air conditioned first class rail fare for the shortest route, as if the journey had been performed by rail.
a) In case the journey is performed by air: Economy airfare of the national carrier for the shortest route or the amount spent, whichever is less
b) In case the place of origin of the journey and destination are connected by rail but the journey is performed by any mode of transport other than air: Air conditioned first class rail fare for the shortest route or amount spent, whichever is less
c) In case the place of origin of the journey and destination are not connected by rail:
i) Where a recognized public transport system exists: 1st class or deluxe class fare on such transport by the shortest route to the place of destination; and
ii) Where no recognized public transport system exists: air conditioned first class rail fare for the shortest route, as if the journey had been performed by rail.
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07 November 2024
So, if any employee has submitted bills of a hired car where he has travelled from City A to City B to City C to City D to City E in a single journey, now how to allow him deduction as an employer?
1 If all the cities are connected to each other through rail
2 if certain cities are not connected to each other directly through rail
1 If all the cities are connected to each other through rail
2 if certain cities are not connected to each other directly through rail
07 November 2024
1. Air conditioned first class rail fare for the shortest route i.e city A to city E, or amount spent, whichever is less.
2. Intermediate cities are not counted, shortest route train fair between first and last city.
2. Intermediate cities are not counted, shortest route train fair between first and last city.
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