This is how to claim your LTA tax exemption this year
The LTA tax break can only be claimed from the travel within India. No other expenses other than the actual expenses incurred on air, rail and bus fares are the areas where one can claim the non-taxable reimbursement.
Leave Travel Allowance (LTA) is not included in taxable income of an employee upto certain limits and conditions.
The LTA tax break can only be claimed from the travel within India. No other expenses other than the actual expenses incurred on air, rail and bus fares are the areas where one can claim the non-taxable reimbursement.
The reimbursement is not available every year. It is only available in a block of two years and current period is calendar year 2014-17.
Some of the ways how you can claim your LTA amount for which tax break are:
Air travel
If you are travelling on the economy class fare of the national carrier by the shortest route then you are eligible to claim the LTA.
Multi-destination journey
If a person is travelling to different places in a single trip then the LTA tax break is limited what is admissible for the journey from the place of origin to the farthest point reached by the shortest route as reported by ET.
Carry over
An employee can carry one journey over to the next block if he/ she did not avail the LTA for one or two permitted journeys in a particular block of 4 years.
In order to avail the LTA Tax break, an employee has to furnish all the travel evidence to the employer.
In case the employee do not travel or submit any travel related documents, the LTA amount gets paid to the employee after deducting tax.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Power of Compounding: How many years will it take to reach Rs 3 crore corpus if your monthly SIP is Rs 4,000, Rs 5,000, or Rs 6,000
Power of Compounding: Salary Rs 25,000 per month; is it possible to create over Rs 2.60 crore corpus; understand it through calculations
Reduce Home Loan EMI vs Reduce Tenure: Rs 75 lakh, 25-year loan; which option can save Rs 25 lakh and 64 months and how? Know here
Top 7 Large and Mid Cap Mutual Funds with Best SIP Returns in 5 Years: No. 1 fund has turned Rs 15,000 monthly SIP investment into Rs 20,54,384; know about others
New Year Pick by Anil Singhvi: This smallcap stock can offer up to 75% return in long term - Check targets
PSU Oil Stocks: Here's what brokerage suggests on these 2 largecap, 1 midcap scrips - Buy, Sell or Hold?
12:43 PM IST