LTA Exemption

Ajay 1
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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.

Regards,

AJay Kochar

allowance leave-travel exemption income-tax lta
1 Answers

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.

Pankaj Batra5212

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

Vineet Sharma•

Yes, you can still claim income tax exemption for travel done as per LTA policy.

Pankaj Batra•

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-

MukeshG•
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