LTA - doubts

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Anee Shahu (Querist)
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26 November 2009 Dear Sir / Mam,

I have working in my present organisation since Feb'08 till date i.e., Nov'09. I claimed LTA in the month of March'09 for the year 2008 (which was paid to me in the same month itself). Now, I'm leaving this organisation this month ie., nov'09, joining another one. Thing is that I got to know that since I can't claim LTA twice a year, I wont be getting it(for the calendar year 2009) in my full and final settlement. When I asked that this is my earned LTA and can be given by deducting taxes in my full and final settlement, I was told there is no such rule, LTA cant be claimed twice in a year and if not claimed i cant avail that. That means m not getting it anyway.Kindly help me out as I don't know much about these rules and regulations. If it is like these then why it is mentioned in CTC, if I'm not getting it.

Regards,

Anee Shahu

shakuntala chhangani

shakuntala chhangani (Expert)
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27 November 2009 Hi Anees, you can take LTA from the Co. as per the co. rules however you can not claim deduction u/s 10(5)

Anee Shahu

Anee Shahu (Querist)
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27 November 2009 Dear Shakuntala,

It will be very helpful if you can explain in a simple way as I don't know much about the above mentioned section.And as per company rules they arnt paying me LTA because I already claimed LTA in March 2009 for the year 2008. And as per rules LTA cant be claimed twice a year.I'm very confused.Kindly help me as my last working day is next week (saturday) and I need to clarify things before that.

Regards,

Anee

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Kishanlal Paliwal

Kishanlal Paliwal (Expert)
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27 November 2009 you can get LTA treating it as Taxable.

CTC simpely means the "cost to the company". If LTA forms the part of your Gross Salary. You can convince the bosses to get it.

The bosses can give such reason for not paying LTA, if LTA is an additional perquisite provided. However, it is the matter of interpratation.

shakuntala chhangani

shakuntala chhangani (Expert)
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29 November 2009 Hi again Anees, when you receive LTA, it is first added to your salary as perk. then you claim deduction for exp. incurred under Section 10(5). to the extent of deduction your salary reduces as also your taxable income. You can earn LTA as many times as the company's policy allows but this deduction can be claimed twice in the block period of two years. If you have earned it as per the policy, forget about deduction and tell your bosses to give it. Further, in accounting and income tax, we follow financial year concept(April to March) rather than calender year. take the same n pay little bit more tax or plan it properly. Regards, CA Shakuntala Chhangani