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LTA

rashmi1kanta (MANAGER) (110 Points)

31 December 2009

Hi , Is the LTA only allowed for a Single journey in a particular FY . If somebody has two travel in a FY , but the amount spent is much below to his eligible amount , can he club both rashmi

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7 Replies

CA Pramod Jain (manager finance) (1577 Points)
Replied 31 December 2009

ya its single journey in a particular fy

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Amir (Learner) (4016 Points)
Replied 31 December 2009

Hi Rashmi, Can you plz specify what is the eligible amount in this case..

Because AMOUNT OF EXEMPTION IS based on the journey performed and such exemption can be claimed twice in a block of 4 years.

I DO NOT AGREE WITH MR. PRAMOD, SINCE CAP IS APPLICABLE ON 4 YEAR BASIS AND EXEMPTION IN RESPECT OF 2 JOURNEY IN A SINGLE FINANCIAL YEAR IS NOT PROHIBETED..

CA Shailesh Ghase. ACA,B.com (CA) (114 Points)
Replied 31 December 2009

mr. amir is right

CA Pramod Jain (manager finance) (1577 Points)
Replied 31 December 2009

Mr.Aamir agreed 2 journeys in 4 yr block is allowed, however once one claims allowance for 2 journeys made in one fy , his/her block of 4yr will be fully utilized , hence it will be illogical to claim 2 journeys in one fy, one can do tax planing accordingly, hope i am clear

Amir (Learner) (4016 Points)
Replied 31 December 2009

Whether it is logigcal or not is a different thing..I meant that Claiming 2 Journeies in a particular FY IS ALLOWED AS PER LAW..

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CA.Tarun Maheshwari (CA, DISA) (7150 Points)
Replied 31 December 2009

Yes. Agree with Amir from law angle...... and Rashmi, what Mr. Pramod has said is correct from tax planning angle. You should look into the taxable amount keeping in mind the probable journey in next year, and plan accordingle for clubbing or not to club.

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