Dear Senior, Can anyone tell me about how to calculate the LTA in salary and when employee eligible for that and working of LTA. Waiting for your reply. Regards, Amit
From India, Delhi
8From India, Delhi
Dear Friend,
I have query about the Leave Travel Allwance (LTA) which are :-
Query 1
My date of joining is 11-Feb-2000 till date i have not claim LTA, now which financial year i can claim as taxable and non-taxable.
Can i claim from 11-feb-2000 to 31-Mar-2007.
Query 2
If i take LTA for 05-06 as non-taxable the can i avail the next year 06-07 as non-taxable.
Query 3
How the LTA will be carry forward to next blow and whether it can be taken as non-taxable.
Query 4
whats are the rules and regulation, for claiming LTA.
Dorin
Email id -
From India, Mumbai
I have query about the Leave Travel Allwance (LTA) which are :-
Query 1
My date of joining is 11-Feb-2000 till date i have not claim LTA, now which financial year i can claim as taxable and non-taxable.
Can i claim from 11-feb-2000 to 31-Mar-2007.
Query 2
If i take LTA for 05-06 as non-taxable the can i avail the next year 06-07 as non-taxable.
Query 3
How the LTA will be carry forward to next blow and whether it can be taken as non-taxable.
Query 4
whats are the rules and regulation, for claiming LTA.
Dorin
Email id -
From India, Mumbai
Dear Friend,
I have query about the Leave Travel Allwance (LTA) which are :-
Query 1
My date of joining is 11-Feb-2000 till date i have not claim LTA, now which financial year i can claim as taxable and non-taxable.
Can i claim from 11-feb-2000 to 31-Mar-2007.
Answer
Any allowance is taxable under IT act. As such leave travel allowance is taxable. If Leave travel allowance is termed as leave travel assistance or leave travel reimbursement the same shall be mon taxable.if the scheme provides for reimbursement of expenses.
Query 2
If i take LTA for 05-06 as non-taxable the can i avail the next year 06-07 as non-taxable.
Answer
as above
Query 3
How the LTA will be carry forward to next blow and whether it can be taken as non-taxable.
Answer
It depends on the scheme formulated
Query 4
whats are the rules and regulation, for claiming LTA.
Answer
There are no standard rules. Each company follows certain rules and in your case if you tell me system then i can reply
From India, Madras
I have query about the Leave Travel Allwance (LTA) which are :-
Query 1
My date of joining is 11-Feb-2000 till date i have not claim LTA, now which financial year i can claim as taxable and non-taxable.
Can i claim from 11-feb-2000 to 31-Mar-2007.
Answer
Any allowance is taxable under IT act. As such leave travel allowance is taxable. If Leave travel allowance is termed as leave travel assistance or leave travel reimbursement the same shall be mon taxable.if the scheme provides for reimbursement of expenses.
Query 2
If i take LTA for 05-06 as non-taxable the can i avail the next year 06-07 as non-taxable.
Answer
as above
Query 3
How the LTA will be carry forward to next blow and whether it can be taken as non-taxable.
Answer
It depends on the scheme formulated
Query 4
whats are the rules and regulation, for claiming LTA.
Answer
There are no standard rules. Each company follows certain rules and in your case if you tell me system then i can reply
From India, Madras
Could anyone please tell me how Leave travel allowance is different from LEave travel assistance?
And also in case of LEave travel allowance, can it be claimed tax exempted for 2 consecutive years in a block of 4 yrs defined by the govt of India?
Are these blocks fixed for all the companys?
Regards
Simran
From Germany
And also in case of LEave travel allowance, can it be claimed tax exempted for 2 consecutive years in a block of 4 yrs defined by the govt of India?
Are these blocks fixed for all the companys?
Regards
Simran
From Germany
Leave Travel Allowance affects every salaried employee. Here we give you a quick low-down on what to expect.
1. You can get LTA only if you have applied for leave from your company and have actually travelled. However, international travel is not valid. You must have travelled within the country.
2. The entire cost of the holiday is not covered. Only the travel costs are covered. So, whether you fly, hop on to a train or take public transport, you will have to show the ticket to claim your LTA. This means you will need to keep your air, rail or public transport ticket.
3. If you travel by car and it is owned by a central government organisation like ITDC, the state government or the local body, then LTA is permitted.
If you could not get public transport and resorted to private transport like renting a car, get a bill issued by the rental company. If the bill is not accepted by your employer, you can always file an income tax return, claim an exemption and get a refund.
4. LTA covers travel for yourself and your family. Family, in this case, includes yourself, parents, siblings dependent on you, spouse (even if your spouse is working) and children.
For children born after October 1, 1998, the exemption is restricted to only two surviving children (unless, of course, one birth has resulted in multiple children like twins and triplets).
If your family travels without you, no LTA can be claimed. You have to make the trip, either by yourself or, if claiming for your family, you should travel with them.
5. LTA is not related to when you started your employment. The government fixes blocks of years. These blocks are not financial years (April 1 to March 31); they are calendar years (January 1 to December 31).
The current block is 2006-09 -- January 2006 to December 2009. The earlier one was from 2002-05 -- January 2002 to December 2005.
During this time period, a person is entitled to two LTA claims.
6. Though you can claim two journeys in a block of four years, you can claim the LTA benefit just once in a year. You cannot claim both the journeys in one year.
So, while a person can get an income tax exemption for two journeys in a block of four calendar years, he can make a trip only once a year.
If you make two trips in a year, you lose one. One way out is to claim one and make your spouse claim the other.
7. You can carry forward your LTA. One LTA can be brought forward and claimed in the first year of the next block.
Let's say you do not take your LTA in 2002-05. Or that you use only one LTA. Don't worry, you will be able to take the pending LTA in 2006. This means that, in the 2006-09 block, you will be totally entitled to the three journeys.
8. If you switch jobs, you can get the LTA not only from your present organisation but also from your former employer, if the concession is lying unutilised.
Let's say that, in the 2002-05 block, you claimed LTA in 2003. In 2004, you switched jobs. You can still claim your second journey with your new employer. Of course, your new employer will ask to look at your earlier tax returns to see whether it has been claimed or not.
9. You must take the shortest route to your destination to be eligible for LTA.
Let's say you are going from Delhi to Mumbai on a holiday. So the cost of your travel from Delhi to Mumbai and Mumbai to Delhi will be eligible for LTA.
If you decide to go to Mumbai via Agra [Images], Jhansi and Itarsi, your LTA from Delhi to Agra will be covered. But Agra to Mumbai will not be covered.
Let's take another scenario. You traveled from Mumbai -- Kerala [Images] -- Delhi -- Mumbai.
If you take a direct connection, you will be eligible for LTA. Mumbai -- Kerala -- Delhi -- Mumbai: LTA covered
But if you throw in Hyderabad, then it goes out of gear.
Mumbai -- Thiruvananthapuram: LTA covered
Thiruvananthapuram -- Hyderabad -- Delhi: LTA not covered
Delhi -- Mumbai: LTA covered
10. If your LTA is not utilised, it gets added to your salary and you will be taxed on it.
Let's say you and your spouse are both employed and both have LTA as part of the salary package. Your LTA is Rs 20,000 and hers is Rs 20,000 too.
Both of you and your child go for a holiday. The tickets for the three of you amount to Rs 15,000. You supply the tickets to your office and this amount will be eligible for a tax deduction; the balance Rs 5,000 will be taxed. You can claim exemption only to the tune of your expenditure.
If you claim this, your spouse will not be able to claim this same holiday from her employer. His/ Her Rs 20,000 will be taxed. Unless, of course, you go for another holiday and he/ she claims it.
Or, let's say, you spend Rs 30,000 on tickets but your LTA is just Rs 20,000. You can claim up to Rs 20,000 and tell your spouse to claim his/ her ticket from his/ her employer.
From India, Bangalore
1. You can get LTA only if you have applied for leave from your company and have actually travelled. However, international travel is not valid. You must have travelled within the country.
2. The entire cost of the holiday is not covered. Only the travel costs are covered. So, whether you fly, hop on to a train or take public transport, you will have to show the ticket to claim your LTA. This means you will need to keep your air, rail or public transport ticket.
3. If you travel by car and it is owned by a central government organisation like ITDC, the state government or the local body, then LTA is permitted.
If you could not get public transport and resorted to private transport like renting a car, get a bill issued by the rental company. If the bill is not accepted by your employer, you can always file an income tax return, claim an exemption and get a refund.
4. LTA covers travel for yourself and your family. Family, in this case, includes yourself, parents, siblings dependent on you, spouse (even if your spouse is working) and children.
For children born after October 1, 1998, the exemption is restricted to only two surviving children (unless, of course, one birth has resulted in multiple children like twins and triplets).
If your family travels without you, no LTA can be claimed. You have to make the trip, either by yourself or, if claiming for your family, you should travel with them.
5. LTA is not related to when you started your employment. The government fixes blocks of years. These blocks are not financial years (April 1 to March 31); they are calendar years (January 1 to December 31).
The current block is 2006-09 -- January 2006 to December 2009. The earlier one was from 2002-05 -- January 2002 to December 2005.
During this time period, a person is entitled to two LTA claims.
6. Though you can claim two journeys in a block of four years, you can claim the LTA benefit just once in a year. You cannot claim both the journeys in one year.
So, while a person can get an income tax exemption for two journeys in a block of four calendar years, he can make a trip only once a year.
If you make two trips in a year, you lose one. One way out is to claim one and make your spouse claim the other.
7. You can carry forward your LTA. One LTA can be brought forward and claimed in the first year of the next block.
Let's say you do not take your LTA in 2002-05. Or that you use only one LTA. Don't worry, you will be able to take the pending LTA in 2006. This means that, in the 2006-09 block, you will be totally entitled to the three journeys.
8. If you switch jobs, you can get the LTA not only from your present organisation but also from your former employer, if the concession is lying unutilised.
Let's say that, in the 2002-05 block, you claimed LTA in 2003. In 2004, you switched jobs. You can still claim your second journey with your new employer. Of course, your new employer will ask to look at your earlier tax returns to see whether it has been claimed or not.
9. You must take the shortest route to your destination to be eligible for LTA.
Let's say you are going from Delhi to Mumbai on a holiday. So the cost of your travel from Delhi to Mumbai and Mumbai to Delhi will be eligible for LTA.
If you decide to go to Mumbai via Agra [Images], Jhansi and Itarsi, your LTA from Delhi to Agra will be covered. But Agra to Mumbai will not be covered.
Let's take another scenario. You traveled from Mumbai -- Kerala [Images] -- Delhi -- Mumbai.
If you take a direct connection, you will be eligible for LTA. Mumbai -- Kerala -- Delhi -- Mumbai: LTA covered
But if you throw in Hyderabad, then it goes out of gear.
Mumbai -- Thiruvananthapuram: LTA covered
Thiruvananthapuram -- Hyderabad -- Delhi: LTA not covered
Delhi -- Mumbai: LTA covered
10. If your LTA is not utilised, it gets added to your salary and you will be taxed on it.
Let's say you and your spouse are both employed and both have LTA as part of the salary package. Your LTA is Rs 20,000 and hers is Rs 20,000 too.
Both of you and your child go for a holiday. The tickets for the three of you amount to Rs 15,000. You supply the tickets to your office and this amount will be eligible for a tax deduction; the balance Rs 5,000 will be taxed. You can claim exemption only to the tune of your expenditure.
If you claim this, your spouse will not be able to claim this same holiday from her employer. His/ Her Rs 20,000 will be taxed. Unless, of course, you go for another holiday and he/ she claims it.
Or, let's say, you spend Rs 30,000 on tickets but your LTA is just Rs 20,000. You can claim up to Rs 20,000 and tell your spouse to claim his/ her ticket from his/ her employer.
From India, Bangalore
Hi, Just wanted to know if the % of reimbursement, is it standard 100% or varies as per company norms?
From India, Pune
From India, Pune
Dear All,
Thanks for the information regarding LTA Scheme.
Can you please clarify regarding LTA Eligibility. These are some points:
First, we are following Financial Year for HLTA.
If any employee completes 6 months in the FY, is he eligible to claim full LTA for that FY.
And if he is resigns in the same FY after claiming LTA, what would be the procedure for deducting the amount.
Regards,
B Somasekhar
09396992055
From India, Hyderabad
Thanks for the information regarding LTA Scheme.
Can you please clarify regarding LTA Eligibility. These are some points:
First, we are following Financial Year for HLTA.
If any employee completes 6 months in the FY, is he eligible to claim full LTA for that FY.
And if he is resigns in the same FY after claiming LTA, what would be the procedure for deducting the amount.
Regards,
B Somasekhar
09396992055
From India, Hyderabad
hi
I have a big query here on LTA Tax exemption... Somebody please help me...
i have applied for LTA in my present compnay and got Tax exemption by submitting my travel bill for the year 2007-2008. For this year i.e 2008-2009 again i applied for LTA and My company finance people are not accepting LTA bills. They tell like, Since i worked for two years in my present organisation i can apply for LTA only one time... But as per Rules i hope, i can be Tax Exempted for two times in the period (2005-2009)...
i agrued many times, but i did work... my finance people are asking for proof... that i havent gone for LTA tax exemption in my previous company... how can i provide such a proof... My CTC in my previous company is below Tax slab... so i have not produced LTA bill.. but i remember i claimed the money from my preivous company..
Now i need a proof which should state that i have not claimed LTA tax Exemption in my Previous company.... its difficult to contact my previous company and ask for details...
Someone tell me... how i can get ride of this.. and be LTA Tax Expemted fot the current year 2008-2009....
From India
I have a big query here on LTA Tax exemption... Somebody please help me...
i have applied for LTA in my present compnay and got Tax exemption by submitting my travel bill for the year 2007-2008. For this year i.e 2008-2009 again i applied for LTA and My company finance people are not accepting LTA bills. They tell like, Since i worked for two years in my present organisation i can apply for LTA only one time... But as per Rules i hope, i can be Tax Exempted for two times in the period (2005-2009)...
i agrued many times, but i did work... my finance people are asking for proof... that i havent gone for LTA tax exemption in my previous company... how can i provide such a proof... My CTC in my previous company is below Tax slab... so i have not produced LTA bill.. but i remember i claimed the money from my preivous company..
Now i need a proof which should state that i have not claimed LTA tax Exemption in my Previous company.... its difficult to contact my previous company and ask for details...
Someone tell me... how i can get ride of this.. and be LTA Tax Expemted fot the current year 2008-2009....
From India
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