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LTA taxable

Darshan Shah (77 Points)

27 May 2020

Agar mujhe lta Taxable karna ho to compulsory leave lena padta hai

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Asha Kanta Sharma (Manager - Finance & Accounts) (36365 Points)
Replied 27 May 2020

Yes.

Conditions for Claiming LTA

Let us understand the conditions/requirements for claiming the exemption.

1. Actual journey is a must to claim the exemption

2. Only domestic travel is considered for exemption i.e., travel within India. No international travel is covered under LTA

3. The exemption for travel is available for the employee alone or with his family, where ‘family’ includes the employee’s spouse, children and wholly or mainly dependent parents, brothers, and sisters of the employee. Further, such an exemption is not available for more than two children of an employee born after 1 October 1998. Children born before 1 October 1998 do not have any restriction. Further, in cases of multiples births on second occasion after having one child is also not affected by this restriction.

Eligible LTA Exemption

The exemption is available only on the actual travel costs i.e., the air, rail or bus fare incurred by the employee. No expenses such as local conveyance, sightseeing, hotel accommodation, food, etc., are eligible for this exemption. The exemption is also limited to LTA provided by the employer.