The first block began in 1986 to 1989, the next block was 1990 to 1993 and so on. Note that the applicable year is calendar year and not financial year. In other words, the last block period started on January 1, 2010 and ended on December 31, 2013. The new block started on January 1, 2014 and will end on December 31, 2017. Leave Travel Allowance (LTA) is basically defined as the cost of travel granted to employees to travel anywhere in India, while on leave from work. The amount of exemption depends upon the mode of travel, and it is allowed only towards the travel fare, and not for boarding and lodging. It is allowed twice in a block of four calendar years. It will be carry forwarded to next LTA year. LTA year or LTC is block of 4 years. We are currently on the 1st Jan 2014- 31 Dec 2017 block. You can claim two journeys against your LTA within this year. Dec 27, 2018 LTA exemption is available for 2 journeys in a block of 4 years. The block applicable for the current period is calendar years 2018-21. Leave Travel Allowance (LTA) forms a part of an employee's total CTC (cost-to-company).
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Oct 24, 2019 A few standard types of allowances covered under the latest salary components is India are: House Rent Allowance (HRA): This is provided to employees for expenses if they live in a rented establishment. Leave Travel Allowance: LTA is the sum paid by the organisation to compensate for domestic travel expenses of employees. It generally doesn't. Terral ok casino opening date today show. Third casino in connecticut casino.
Keerthipranav
Prashant B Ingawale
Chi.naam
Vksbhrt
chi.naam
Hi, I've been working with a Japanese MNC as HR Executive since past 11months(I joined in July 2007). In our company, it has been said that I can claim LTA Only Completion of One year???? Why is it so, IF Govt. of India has 4yrs Block i.e. 2006-09 Jan-Dec. ???????
Secondly if I switch to some other company, will I still get the LTA or I can claim only after One year i.e. July 2007???? Why is it So??
Third, after switching to some other company, can I claim LTA every Year ???? Because Our COMPANY says that an Employee Can Claim the Stated LTA Amount Every Year???? How much true is it and is it true from LEGAL Point Of View?????? Can some1 please answer this questions....It will be of great help for me as well to make other people Understand Regarding the same.
Regards,
Chinmay Desai.
From India, Mumbai
vksbhrt
Hi Chinmay, What ever information I have I am sending to you. Regards, vikasFrom India, Pune
Attached Files
| LTA FUNDAMENTALS.doc(55.0 KB, 491 views) |
| LTA.doc(22.5 KB, 336 views) |
Keerthipranav
Please find below the creteria for availing LTA:
LTA is tax free for the amount you have submitted the bills.
Say in your package LTA is 25000/- and you have performed journey for 15000/- and submitted the relavent documents, 15000/- is exempted from tax as per sec 10 of IT Act and remaining amount is taxable.
The present blaock is January 2006 to December 2009.
Only domestic tranvel will be conisdered for claiming LTA.
LEAVE TRAVEL CONCESSION
L.T.C. is granted to an employee in connection with the journey on leave by him or his family. It is exempt from income tax within certain limits as under : -
For availing this benefit the employee should at least use his one day PL (Privileged leave).
Exemption is limited to amount actually spent.
Only two journeys in a block of 4 years are exempt. Block of four calendar years commencing from 1986. Fresh block commence from 1 January 2006 to 31, December 2009.
If LTA has not availed during any of the specified four year block periods on one of the two permitted occasions( or on both occasions), exemption can be claimed in the first calendar year of the next block(but in respect of only one Journey). This is known as 'Carry over concession' In such case exemption so availed will not be counted for the purpose of claiming the future exemptions allowable in respect of 2 journeys in the subsequent block.
Quantum of exemption is limited to expenses on air fare, rail fare, bus fare only. No other expenses like scooter charges at both ends, porterage expenses during the journey and lodging/boarding expenses will qualify for exemption.
If the journey is performed by circuitous route, the exemption is limit to admissible only to shortest route. Where the journey is performed in a circular form touching different places, the exemption will be limited to what is admissible for the journey from the place of origin to the farthest point reached, by the shortest route.
Family in relation to individual means: Spouse and children of the individual, and the parents, brothers and sisters of the individual who are wholly and mainly dependent on him.
Exemption is available in respect of two children born after October 1, 1998.
Journey in different situation:
Journey performed by air: Economy fare of National carrier by shortest route or the amount spent which ever is less.
Journey performed by Rail: Amount of First –A/c rail fare by shortest route or amount spent whichever is less.
Origin and destination of the journey connected by rail and journey performed by any other mode of transport: Amount of First –A/c rail fare by shortest route or amount spent whichever is less.
Where recognized public transport exists: First class or deluxe class fare by the shortest route or amount spent, whichever is less.
Where no recognized public transport systems exists: Amount of First –A/c rail fare by shortest route or amount spent whichever is less.(as if the journey had been performed by rail)
In case the L.T.A. is en cashed without actually performing the journey the entire amount received by the employee would be taxed in his hands.
From India, Gurgaon
From India, Chennai
From India, Pune
From India
From India, Solan
LTA (Leave against Travel) has no limit as per Income tax law under section 10 (5) rule (2b). Any person can avail this facility two times in the block of 4 years. Current block is 2010 - 13. There are specific rules need to be followed to get the benefit.
Travel should be performed by the employee or employee and his family together.
Family means spouse, children, dependent Parents brothers & sisters.
Leave for minimum of 3 working days to be taken.
LTA Claim should be approved by HR - (Leave confirmation)
The opted amount will be withhold from monthly salary & reimbursed on submission of bills.
Exemption is available in respect of travel to any one place within India by the shortest route
Exemption is available only towards travel fare and does not include any other expense.
regards
suneel.
From India, Bangalore
However, LTC is exempt u/s 10(5). there are plenty of rules & conditions prescribed to avail such exemption as described above by Suneel.
But I have never come across any specific limit of exemption for LTC as stated above by some members. I believe it is tax free upto the amount actually spent by employee with proofs submitted (subject to other conditions fulfillment)
Rajiv
From India, Gurgaon
LTA leave travel allowance is a perk that is given by the company to an employee and this is usually taken at the end of the year usually Dec. This facility is available to the employee and his family members i.e, spouse and children. All expenses pertaining to this are taken care of the company subject to the limit and the employee producing proof of expense.
As per my knowledge, this would be treated as a perk and taxable.
Please correct me if wrong.
Tks Raj
From India, Bangalore
LTC is Leave Travel Concession.
If you mean something else by acronym LTA please clarify.
If you mean Leave Travel Allowance [ or Leave Travel Concession ] , then income tax exemption is limited to Air Economy or AC1 to the shortest route subject to submission of documentary evidence and number of family members eligible etc etc. There is no restriction on amount which can be paid under this head. Amount paid minus actual spent on traveling ticket is taxable as per the slab. This concession is allowed twice in a block of four years.
If you mean Local Travel Allowance , then daily rate of Rs 50.00 of actual attendance is exempt. The latest daily rate value needs rechecking .
From India, Mumbai
Exemption of Fare Only - LTA exemption can be claimed where the employer provides LTA to employee for leave to any place in India taken by the employee and their family. Such exemption is limited to the extent of actual travel costs incurred by the employee. Travel has to be undertaken within India and overseas destinations are not covered for exemption.
Exemption on Actual Expense - For example, where an employer provides LTA of Rs 25,000, but an employee spends only Rs 20,000 on the travel cost, then the exemption is limited to only Rs. 20,000.
Travel cost means the cost of travel and does not include any other expenses such as food, hotel stay etc.
The meaning of ‘family' for the purposes of exemption includes spouse and children and parents, brothers and sisters who are wholly or mainly dependent on you.
An individual would not be able to claim the exemption in relation to his parents, brother or sisters unless they are wholly or mainly dependent on the individual. Further, exemption is not available for more than two children of an individual born after October 01, 1998.
This restriction does not apply in respect of children born before this date, and also in cases where an individual, after having one child, begets multiple children (twins or triplets or quadruplets, etc.) on the second occasion. The term 'Child' includes a step-child and an adopted child of the individual.
Amount Exempted
1. Journey performed by Air - Economy Air fair of National carrier by the shortest route or the amount spent which ever is less will be exempt
2. Journey performed by Rail – A.C. first class rail fare by shortest route.or amount spent which ever is less will be exempt.
3. Place of origin and destination place of journey connected by rail but journey performed by other mode of transport - A.C. first class rail fare by shortest route or amount spent which ever is less.
4. Place of origin& destination not connected by rail(partly/fully) but connected by other recognised Public transport system - First class or deluxe class fare by shortest route or amount spent which ever is less.
5. Place of origin& destination not connected by rail(partly/fully) and not connected by other recognised Public transport system also – AC first class rail fare by shortest route (as the journey had been performed by rail) or the amount actually spent ,which ever is less.
From India, Delhi
LTA (Leave against Travel) has no limit as per Income tax law under section 10 (5) rule (2b). Any person can avail this facility two times in the block of 4 years. Current block is 2010 - 13. There are specific rules need to be followed to get the benefit.
Travel should be performed by the employee or his family together. Family means spouse, children, dependent Parents brothers & sisters.
Leave for minimum of 3 working days to be taken.
Exemption is available in respect of travel to any one place within India or abroad on producing the original bills on Travel. If you travel by Air you need to produce ticket as well as boarding pass of traveler, If you travel by car you need to produce original bill, Trip sheet, Toll gate tickets (in originals). But LTA will be calculated only shortest rout as well as 3 tier train rates.
It is benefit the employee only in terms of saving some amount of income tax
Regards
Harsha
From India, Bangalore
For Medical Reimbursement limit is of 15kpa but for LTA there is no limit or it can be fixed amount(eg: 2 months basic salary*12 per annum) given by employer and ultimately part of your CTC breakup. Correct me if I am wrong..
From India, Pune
Proof of travel
Recently Supreme Court has held in the case of Larsen & Toubro and ITI that employers are under no statutory obligation to collect bills and details to prove that the employees had utilised the amounts obtained against these claims on travel and related expenses.
Employers while assessing the travel allowance claims, do not need to collect proof of travel to submit to the tax authorities. Though it is not mandatory for employers to demand proof, they still have the right to demand documentary proof depending on its policy. The Judgement of Supreme Court has only moved the responsibility from the employer to the employee, the assessing officer can still ask for the employee to provide details of travel.
The individual however needs to keep copies for his or her own records. Such proofs are helpful at the time of the audit of the tax return of the individual. Proof of travel could be, for example, tickets, boarding passes, invoice of travel agent, duty slip etc .
During the Fringe Benefit tax (FBT) regime, provision of paid holidays, including travel cost to any place, stay expenses etc. were subject to FBT in the hands of employers and were not taxable in the hands of individuals. Many employers extended the paid holiday benefit instead of LTA.
Now with the elimination of FBT , with effect from. April 1, 2009, paid holiday benefit is fully taxable in the hands of employees and, therefore, employers are reintroducing the LTA element by withdrawing the paid holidays benefit
From India, Delhi
LTA is tax free for the amount you have submitted the bills.
Say in your package LTA is 25000/- and you have performed journey for 15000/- and submitted the relavent documents, 15000/- is exempted from tax as per sec 10 of IT Act and remaining amount is taxable.
The present blaock is January 2006 to December 2009.
Only domestic tranvel will be conisdered for claiming LTA.
LEAVE TRAVEL CONCESSION
L.T.C. is granted to an employee in connection with the journey on leave by him or his family. It is exempt from income tax within certain limits as under : -
For availing this benefit the employee should at least use his one day PL (Privileged leave).
Exemption is limited to amount actually spent.
Only two journeys in a block of 4 years are exempt. Block of four calendar years commencing from 1986. Fresh block commence from 1 January 2006 to 31, December 2009.
If LTA has not availed during any of the specified four year block periods on one of the two permitted occasions( or on both occasions), exemption can be claimed in the first calendar year of the next block(but in respect of only one Journey). This is known as 'Carry over concession' In such case exemption so availed will not be counted for the purpose of claiming the future exemptions allowable in respect of 2 journeys in the subsequent block.
Quantum of exemption is limited to expenses on air fare, rail fare, bus fare only. No other expenses like scooter charges at both ends, porterage expenses during the journey and lodging/boarding expenses will qualify for exemption.
If the journey is performed by circuitous route, the exemption is limit to admissible only to shortest route. Where the journey is performed in a circular form touching different places, the exemption will be limited to what is admissible for the journey from the place of origin to the farthest point reached, by the shortest route.
Family in relation to individual means: Spouse and children of the individual, and the parents, brothers and sisters of the individual who are wholly and mainly dependent on him.
Exemption is available in respect of two children born after October 1, 1998.
Journey in different situation:
Journey performed by air: Economy fare of National carrier by shortest route or the amount spent which ever is less.
Journey performed by Rail: Amount of First –A/c rail fare by shortest route or amount spent whichever is less.
Origin and destination of the journey connected by rail and journey performed by any other mode of transport: Amount of First –A/c rail fare by shortest route or amount spent whichever is less.
Where recognized public transport exists: First class or deluxe class fare by the shortest route or amount spent, whichever is less.
Where no recognized public transport systems exists: Amount of First –A/c rail fare by shortest route or amount spent whichever is less.(as if the journey had been performed by rail)
In case the L.T.A. is en cashed without actually performing the journey the entire amount received by the employee would be taxed in his hands.
Lta Year Slot India Price
From India, Gurgaon
I0077
Hi, The Block of 4 years concept is applicable for Public Limited companies or Govt only?From India, Chennai
Lta Year Slot India Customer Care
Prashant B Ingawale
BLOCK year concept is applicable for all employees either of goverment or privateFrom India, Pune
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#Listed In:income taxpublic transportclaiming ltaCountry-IndiaCity-India-Mumbai
Lta Year Slot India Pvt Ltd
Rajiv505
Rajmore22
SUNEELKMASUR
Saurav1314
Harsha Shetty
Roshani.Rathod
rajmore22
Hi All up to what limit the LTA is exempted under I.T. ( e.g. in Rupees ) suppose if one person basis is 45000/- then and his LTA is yearly 90000/- then is it allowed by I.T. RajFrom India
Ashi Rana
As per my knowledge, the LTA is exempted upto Rs. 15000/- per year i.e. Rs. 1250/- per month and is also deemed non- taxable for 2 times in a 4 years. thanks and regards,From India, Solan
SUNEELKMASUR
Dear Raj,LTA (Leave against Travel) has no limit as per Income tax law under section 10 (5) rule (2b). Any person can avail this facility two times in the block of 4 years. Current block is 2010 - 13. There are specific rules need to be followed to get the benefit.
Travel should be performed by the employee or employee and his family together.
Family means spouse, children, dependent Parents brothers & sisters.
Leave for minimum of 3 working days to be taken.
LTA Claim should be approved by HR - (Leave confirmation)
The opted amount will be withhold from monthly salary & reimbursed on submission of bills.
Exemption is available in respect of travel to any one place within India by the shortest route
Exemption is available only towards travel fare and does not include any other expense.
regards
suneel.
From India, Bangalore
rajiv505
In fact, if we look precisely, LTA is leave travel allowance and it is fully taxable under Income Tax Act as it is a fixed allowance.However, LTC is exempt u/s 10(5). there are plenty of rules & conditions prescribed to avail such exemption as described above by Suneel.
But I have never come across any specific limit of exemption for LTC as stated above by some members. I believe it is tax free upto the amount actually spent by employee with proofs submitted (subject to other conditions fulfillment)
Rajiv
From India, Gurgaon
natraj.38
Hi all,LTA leave travel allowance is a perk that is given by the company to an employee and this is usually taken at the end of the year usually Dec. This facility is available to the employee and his family members i.e, spouse and children. All expenses pertaining to this are taken care of the company subject to the limit and the employee producing proof of expense.
As per my knowledge, this would be treated as a perk and taxable.
Please correct me if wrong.
Tks Raj
From India, Bangalore
Premendra Pranay
LTA is Local Travel Allowance . LTC is Leave Travel Concession.
If you mean something else by acronym LTA please clarify.
If you mean Leave Travel Allowance [ or Leave Travel Concession ] , then income tax exemption is limited to Air Economy or AC1 to the shortest route subject to submission of documentary evidence and number of family members eligible etc etc. There is no restriction on amount which can be paid under this head. Amount paid minus actual spent on traveling ticket is taxable as per the slab. This concession is allowed twice in a block of four years.
If you mean Local Travel Allowance , then daily rate of Rs 50.00 of actual attendance is exempt. The latest daily rate value needs rechecking .
From India, Mumbai
Aruntalwar
Section 10(5) of the Income-Tax Act, 1961, read with Rule 2B, provides for the exemption and outlines the conditions subject to which LTA is exempt. Exemption of Fare Only - LTA exemption can be claimed where the employer provides LTA to employee for leave to any place in India taken by the employee and their family. Such exemption is limited to the extent of actual travel costs incurred by the employee. Travel has to be undertaken within India and overseas destinations are not covered for exemption.
Exemption on Actual Expense - For example, where an employer provides LTA of Rs 25,000, but an employee spends only Rs 20,000 on the travel cost, then the exemption is limited to only Rs. 20,000.
Travel cost means the cost of travel and does not include any other expenses such as food, hotel stay etc.
The meaning of ‘family' for the purposes of exemption includes spouse and children and parents, brothers and sisters who are wholly or mainly dependent on you.
An individual would not be able to claim the exemption in relation to his parents, brother or sisters unless they are wholly or mainly dependent on the individual. Further, exemption is not available for more than two children of an individual born after October 01, 1998.
This restriction does not apply in respect of children born before this date, and also in cases where an individual, after having one child, begets multiple children (twins or triplets or quadruplets, etc.) on the second occasion. The term 'Child' includes a step-child and an adopted child of the individual.
Amount Exempted
1. Journey performed by Air - Economy Air fair of National carrier by the shortest route or the amount spent which ever is less will be exempt
2. Journey performed by Rail – A.C. first class rail fare by shortest route.or amount spent which ever is less will be exempt.
3. Place of origin and destination place of journey connected by rail but journey performed by other mode of transport - A.C. first class rail fare by shortest route or amount spent which ever is less.
4. Place of origin& destination not connected by rail(partly/fully) but connected by other recognised Public transport system - First class or deluxe class fare by shortest route or amount spent which ever is less.
5. Place of origin& destination not connected by rail(partly/fully) and not connected by other recognised Public transport system also – AC first class rail fare by shortest route (as the journey had been performed by rail) or the amount actually spent ,which ever is less.
From India, Delhi
Harsha Shetty
Dear Premendra, LTA (Leave against Travel) has no limit as per Income tax law under section 10 (5) rule (2b). Any person can avail this facility two times in the block of 4 years. Current block is 2010 - 13. There are specific rules need to be followed to get the benefit.
Travel should be performed by the employee or his family together. Family means spouse, children, dependent Parents brothers & sisters.
Leave for minimum of 3 working days to be taken.
Exemption is available in respect of travel to any one place within India or abroad on producing the original bills on Travel. If you travel by Air you need to produce ticket as well as boarding pass of traveler, If you travel by car you need to produce original bill, Trip sheet, Toll gate tickets (in originals). But LTA will be calculated only shortest rout as well as 3 tier train rates.
It is benefit the employee only in terms of saving some amount of income tax
Regards
Harsha
From India, Bangalore
Roshani.Rathod
i think some people are getting confused with Medical Reimbursement and LTA.For Medical Reimbursement limit is of 15kpa but for LTA there is no limit or it can be fixed amount(eg: 2 months basic salary*12 per annum) given by employer and ultimately part of your CTC breakup. Correct me if I am wrong..
From India, Pune
Aruntalwar
Dear Harsha,Proof of travel
Recently Supreme Court has held in the case of Larsen & Toubro and ITI that employers are under no statutory obligation to collect bills and details to prove that the employees had utilised the amounts obtained against these claims on travel and related expenses.
Employers while assessing the travel allowance claims, do not need to collect proof of travel to submit to the tax authorities. Though it is not mandatory for employers to demand proof, they still have the right to demand documentary proof depending on its policy. The Judgement of Supreme Court has only moved the responsibility from the employer to the employee, the assessing officer can still ask for the employee to provide details of travel.
The individual however needs to keep copies for his or her own records. Such proofs are helpful at the time of the audit of the tax return of the individual. Proof of travel could be, for example, tickets, boarding passes, invoice of travel agent, duty slip etc .
During the Fringe Benefit tax (FBT) regime, provision of paid holidays, including travel cost to any place, stay expenses etc. were subject to FBT in the hands of employers and were not taxable in the hands of individuals. Many employers extended the paid holiday benefit instead of LTA.
Now with the elimination of FBT , with effect from. April 1, 2009, paid holiday benefit is fully taxable in the hands of employees and, therefore, employers are reintroducing the LTA element by withdrawing the paid holidays benefit
From India, Delhi
1
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