My friend is getting LTA @1250 pm, is this wholly exempted or taxable. Pls let me know the calculation of exemption and as he has already paid 40K as IT for march 08 as deducted by his employer. Now while preparing his computation, he found that tax to be paid is 15K more. So if he files IT as on 31st july 08 within duedate and pays 15K also, then also is he liable to pay any interest or penalty. pls suggest
28 July 2008
Leave Travel Assistance is allowed exemption to an individual in respect of two journeys performed in a block of four calender years commencing from 1986. For details, go through Rule 2B of Income tax rules. Regarding Interest, he will have to pay interest u/s 234B and 234C, for default/deferment of advance tax, as the case may be.
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