LTA Claim for taxi tour package

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Is it possible to claim lta for a taxi tour package? Me and my family (4 members) traveled from Bangalore to Munnar as part of the Taxi car(rental) tour package. Without sightseeing total amount for up and down(bangalore to munnar and Munnar to Bangalore) is 20,000.

  1. Is it possible to claim this amount?
  2. If tax department take second class ac fare(bangalore to Eranakulam and rest in public bus), total amount is coming more than taxi tour package so which amount they will take?
  3. Will they calculate using the normal deluxe bus fare of non a/c ksrtc or ac charge?
  4. For taxi car package what are the proof docs I need to submit?

I traveled from Bagdogra to Gangtok by taxi. It is not connected by rail. Is it allowed for central govt LTC ?

Yes, it would be allowed, but max exemption would be fair on public transport (like bus) on such route.

1 Answers

Employer should accept taxi bills for LTA claim. They would provide tax exemption as per IT rules.

As per IT rules, Following amount would be non-taxable:

  1. Where journey is performed by rail; railway-fare in first AC class by shortest route to destination.
  2. Where places of origin and destination are connected by rail but the journey is performed by any other mode then first AC class fare by shortest route to the place of destination.
  3. Where place of origin of journey and destination, or part thereof, are not connected by rail and journey is performed by any other transport; then (i) If a recognized public transport system exists between such places the first class or deluxe class fare of such transport by shortest route, or, (ii) If in other case, first AC class fare for the distance of the journey by the shortest route, as if the journey has been performed by rail.

So, your maximum exemption limit would be limited to first class AC fare from Bangalore to Eranakulam and rest in public bus or actual claim amount, whichever is lower.

For Eranakulam to Munnar, public state travel bus fare would be used. AC class bus fare on state transport can be taken.

As proofs, bills from taxi service can be used.

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