LTC

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Querist : Anonymous

Querist : Anonymous (Querist)

16 November 2010 IS LEAVE TRAVEL CONCESSION FULLY TAXABLE?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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16 November 2010 LTA will be exempted subject to specefic conditions

CA.Madhusudan B.P.

CA.Madhusudan B.P. (Expert)
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16 November 2010 Company policy read with Sec 10(5)

[(5) in the case of an individual, the value of any travel concession or assistance received by, or due to, him,—

(a) from his employer for himself and his family, in connection with his proceeding on leave to any place in India ;

(b) from his employer or former employer for himself and his family, in connection with his proceeding to any place in India after retirement from service or after the termination of his service,

subject to such conditions as may be prescribed5 (including conditions as to number of journeys and the amount which shall be exempt per head) having regard to the travel concession or assistance granted to the employees of the Central Government :

Provided that the amount exempt under this clause shall in no case exceed the amount of expenses actually incurred for the purpose of such travel.

Explanation.—For the purposes of this clause, “family”, in relation to an individual, means—

(i) the spouse and children of the individual ; and

(ii) the parents, brothers and sisters of the individual or any of them, wholly or mainly dependent on the individual; ]

IT is not fully taxable, exemption are available U/s 10(5).
Note that this exemption is available only twice in a block of 4 calander years.

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Querist : Anonymous

Querist : Anonymous (Querist)

18 December 2010 Thanks a lot sir