LTA exemption for block year 2022-26

797 views 2 replies

G. Parameshwar Rao

Accounts officer

66 Points Joined November 2017

Dear Experts,

As we are in the LTA Block year 2022-26, my employer has taxed my LTA this year that is FY-2021-22 and I have paid the tax for the LTA, but I have a proof for traveling for FY-2021-22 as I have traveled with my family this year.

My query is that for current year FY-2022-23 my employer is allowing me to take tax exemption on LTA. But I have opted for New Tax Regime this year where my LTA is fully taxable. Can I avail tax exemption on LTA by keeping the traveling proof for the FY-2021-22 as per CBDT I can take tax exemption for any 2 block years.

Please suggest me for the above query!

Thanks,
Parameshwar Rao

Replies (2)

CA Puja Sharma

Chartered Accountant

5010 Points Joined March 2020

Since you have opted for a new tax regime, you cannot take benefit of LTA in your current ITR for FY 2022-23

If you have opted for an Old tax regime in FY 2021-22, you can benefit from LTA even if your employer has not provided while deducting the taxes. The extra tax is by the employer and will be refunded by the dept. After the IT return is filed for FY 2021-22.