Salary Income

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K V RAMA MOHAN RAO

K V RAMA MOHAN RAO (Querist)
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18 December 2008 Is there any difference between LTA and LTC in tax emptions while arriving Taxable income

Bindu Madhav

Bindu Madhav (Expert)
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20 December 2008 LTC - leave travel concession is based on expenditure the employer will give money to the employee - and this is exempted subject to the conditions of Sec. 10(5) of IT Act.

LTA - Leave Travel ALLOWANCE - this is an allowance which will not get any exemption as it is not depending on the actual expenditure.

So generally the companies will use LTC - if the amount is subjected to 10(5) or wish to give exemption to employees. But more than the name exemption is based on the satisfaction of the conditions in 10(5)