Sheetal (Sr. Executive [ Accounts & Finance ]) (49 Points)
09 November 2009is that necessary to pay conveyance [ Which is part of the salary ] of Rs.800/- [ p.m.] by cash voucher to avail. deduction of convey. ?
if gross salary is 15000/- , how it should be bifurcated in various heads like Basic, Conveyance, HRA etc.
Also tell me how LTA to be calculated?
K.Pandiarajan
(Asst General Manager Finance & Accounts)
(50 Points)
Replied 10 November 2009
There is no need to pay by cash even cheque payment, transfer to employee account is sufficient.
LTA is exempted 2 times between a block of 4 financial year. the payment should debited in LTA a/c in company books. Usually IInd A/c fair, hotel accommodation, boarding expenses are allowed.
For bifurcation of gross there is lot methods based on their IT ceiling
ANITA BHADRA
(MANAGER(FIN))
(45 Points)
Replied 30 November 2009
| Originally posted by :K.Pandiarajan | ||
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There is no need to pay by cash even cheque payment, transfer to employee account is sufficient. LTA is exempted 2 times between a block of 4 financial year. the payment should debited in LTA a/c in company books. Usually IInd A/c fair, hotel accommodation, boarding expenses are allowed. For bifurcation of gross there is lot methods based on their IT ceiling |
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Dear friend , What I understand that LTA is exempted for train/Air fare only . Pl . confirm whether hotel accomodation and boarding expenses are allowed as exemption . If yes , under which section of IT Act ? Regards
Anita Bhadra
CA Rahul Jain
(CA)
(1162 Points)
Replied 30 November 2009
it is not necessary to pay conv. allow in cash or cheque. as far as deduction is concerned, deduction shall be allowed on the basis of pay slip wherein conv. allowance wud be specifically mentioned.
CA Rahul Jain
(CA)
(1162 Points)
Replied 30 November 2009
Leave travel allowance is fully taxable.
however leave travel concession or leave travel assistance for the person and his family is exempt u/s 10(5) of IT Act, 1961.Some of the relevant terms are:
1. Amount exempt under this section shall in no case exceed the amount of expenses actually incurred for the purpose of such travel subject to the following:
2. where the journey is performed on or after the 1st day of October, 1997, by air, an amount not exceeding the air economy fare of the national carrier by the shortest route to the place of destination;
Where such travel concession or assistance is not availed of by the individual during any such block of four calendar years, an amount in respect of the value of the travel concession or assistance, if any, first availed of by the individual during first calendar year of the immediately succeeding block of four calendar years shall be eligible for exemption.
CAclubindia
