I have 0 taxable income after claiming all deductions like Home loan/Medical tax exemption/Section 80U etc I want to claim LTA. however i dont know a) Is this taxed seperately or added to the gross income and tax applied on that? b) Can I claim it every year if i have 0 taxable income even after claiming LTA? c) I understand that i dont need to show proofs to my employer however i need to show proofs to the tax authorities- what i want to know if I have 0 taxable income every time i claim LTA, do i need to show this proofs or not?
1 Answers
If LTA is in your CTC (cost to company) package, company should pay you this amount every year.
If your taxable income including LTA amount is not taxable, company should pay you LTA without deducting any tax, whether you claim for it or not. In this case LTA will be provided to you like other non-taxable allowances (special allowance/basic salary etc)
But if your taxable income including LTA is exceeding non-taxable range and you claim for LTA, this amount will be non-taxable twice in a block of four years.
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