LTA Exemption

One of our employee get benefit of LTA but LTA is not specified in his CTC. I have some questiones regarding the same. 1) Can company show LTA which is paid to employee consider as company expenses because LTA is a not a part of employees CTC? 2) Can LTA amount paid is consider as employees income and need to deduct the tax on it if hotel charges is also paid?

Request to reply.


AJay Kochar

asked Feb 26 '11 at 01:55 by Ajay 1111

Some companies pay over and above the CTC package of an employer for travel done as per actual bills (Govt departments have the same policies).

LTA is considered part of income earned in year as its for personal travel on holidays. Hotel charges are not exempted from income tax as per Income tax rules, only the transportation is exempted.

answered Feb 27 '11 at 12:10 by pankaj 5.2k320

Dear Pankaj, I want to know as My company pay all my LTA in my salary component on monthly basis. Still can I get the Income tax deduction while on holidays with family. Vineet Sharma
(Oct 09 '12 at 10:37) Vineet Sharma
Yes, you can still claim income tax exemption for travel done as per LTA policy.
(Oct 09 '12 at 14:34) pankaj
Hi Pankaj, I read all your replies and found it to be very helpful. But i have a query whiich is little different from all. 1) If i travel to multiple locations by taking official leave, then can i claim LTA exemption. Routes as below, Pune => Indore => Delhi = Mumbai => Pune. Request your kind reply. Thanks Mukesh-
(Jul 04 '13 at 18:26) MukeshG
Only shortest route fare between Pune-Delhi would be considered for LTA exemption. If you traveled by air, economy class return airfare of Pun-Delhi would be exempted maximum, else first class train fare on this route would be considered.
(Jul 04 '13 at 18:28) pankaj
Do you mean that only a single journey return fare can be claimed. i,e, Pune - Delhi -Pune
(Jul 04 '13 at 18:30) MukeshG
Yes, single journey can only be claimed.
(Jul 04 '13 at 18:48) pankaj
No, You can put your bills for complete journey, but the amount that would be considered for exemption would be computed based on shortest route. Here you will give all the bills for - Pune => Indore => Delhi = Mumbai => Pune. But while giving exemption the accounts person will find out the actual amount that is needed to travel on the direct route Pune - Delhi - Pune.
(Jul 07 '13 at 21:31) Vineet Mittal
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Asked: Feb 26 '11 at 01:55

Seen: 2,487 times

Last updated: Jul 07 '13 at 21:31