Sir, If a person has annual eligibility of LTA as 20000. He Cary forward his first year's 20000 to next year and then claims this 40000 LTA. will this 40000 entirely be non taxable ? suppose he holds it for 4 years then claims it once which is equal to 80000 then weather this 80000 is exempted or only 20000 20000 = 40000 is exempted
1 Answers
It depends on flexibility of your employer's accounting. Generally LTA is part of CTC and if not claimed in a year, employer pay amount after deducting taxes.
If your employer agrees to pay you four year's LTA combined after four years, you should be able to have full amount tax free too, if you have spent same on leave travel. There is no as such maximum limit of amount of LTA claim, provided travel inside India is done and public transport is used with dependent family.
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