Hi, I have to make an LTA Policy. I need to know what part of it is taxable. Also, it is claimed twice in a block of 4 years, so can that be two consecutive years? :roll: Can LTA be carried forward to the next block of 4 years?
From United States, Chicago
From United States, Chicago
Hi Preeti:
LTA Slab fixation is different with different companies. for e.g. in my company the LTA slab is fixed at 75,000
If any employee has opted for LTA allowance (In my company 75K is the max limit the he can opt for) Assume he opted for 50K on annual basis. If he is able to produce bills worth 50K then he is not taxed. Take another scenario if he produces bills woth only 10k the balance 40k will be taxed and paid to him at the end of FY.
And yes, the LTA is carried forward in the next 4 year block. Yes, claimed twice in a block of four year.
Cheers,
Nikita
From India
4LTA Slab fixation is different with different companies. for e.g. in my company the LTA slab is fixed at 75,000
If any employee has opted for LTA allowance (In my company 75K is the max limit the he can opt for) Assume he opted for 50K on annual basis. If he is able to produce bills worth 50K then he is not taxed. Take another scenario if he produces bills woth only 10k the balance 40k will be taxed and paid to him at the end of FY.
And yes, the LTA is carried forward in the next 4 year block. Yes, claimed twice in a block of four year.
Cheers,
Nikita
From India
Hi,
Exemption is based upon the actual expenditure and strictly restricted to the actual fare incurred for journey performed within India by air/bus/rail , at shortest route will be the qualifing amount.
If an assessee has not availed LTC/A during any of the specified 4 yrs block period on one of the two permitted occations, exemption can be claimed in the fist calander year of the next block.
In this case the exemption so availed will not be counted for the purposes of claiming future exemptions allowed in subsequent block of four years.
Praveen Garg
Exemption is based upon the actual expenditure and strictly restricted to the actual fare incurred for journey performed within India by air/bus/rail , at shortest route will be the qualifing amount.
If an assessee has not availed LTC/A during any of the specified 4 yrs block period on one of the two permitted occations, exemption can be claimed in the fist calander year of the next block.
In this case the exemption so availed will not be counted for the purposes of claiming future exemptions allowed in subsequent block of four years.
Praveen Garg
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LTA Policy.doc