Mr Red has shown LTA of Rs 55000/- in the financial year 2008-09, my question is 1) Is there any limit for LTA 2)What prove require to be provided in case of scrunity 3)Evet every year can a employee can claim LTA and get income tax exemption 4)Employer has given option to choose head for CTC,can employee put LTA 200000/- or even higher amount. Regards CA L.Gopal Shah
There is no limit for LTA. It is basically decided by the company. You must get his original journey tickets. For journey done by flight then economic fair should be gain as LTA amount. Employees can claim LTA twice in the block of 4 calender year. The current block is 2006-2009. The next block will be 2010-2013. If the option given by the employer then employee can mention any amount even more than 2L.
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