Hi,
I have been working with my current employer since October 2011. I am having LTA as a part of my CTC ever since joining this organisation, however, I have not claimed it till date neither do I have any plans of going out for a vacation till March'16 and the LTA has been accumulating all this while. I would be requiring some funds shortly (Say around August - September'15). Can you please clarify whether I can claim the accumulated LTA (after deducting applicable taxes) at the middle of the year, also, should I wait till October to claim the same as my DOJ this organisation is in October and in that case I would be able to claim the LTA for one extra year completed.
Pls clarify
Rgds,
Suman
From India, undefined
I have been working with my current employer since October 2011. I am having LTA as a part of my CTC ever since joining this organisation, however, I have not claimed it till date neither do I have any plans of going out for a vacation till March'16 and the LTA has been accumulating all this while. I would be requiring some funds shortly (Say around August - September'15). Can you please clarify whether I can claim the accumulated LTA (after deducting applicable taxes) at the middle of the year, also, should I wait till October to claim the same as my DOJ this organisation is in October and in that case I would be able to claim the LTA for one extra year completed.
Pls clarify
Rgds,
Suman
From India, undefined
Please refer to your Company's policy for this. Some organisations do not allow accumulations. If you do not claim in a year , it lapses. In general, you can claim even if you do not travel but you need to pay tax However check your company rules as such allowances are not covered by any law excepting IT
From India, Chennai
368From India, Chennai
Dear Suman,
LTA is an annual entitlement. There shud not be extra amount if u claim after Oct (pls refer ur co. policy).
However, u can save TAX if u claim LTA in two Phases (between Jun-Sep). First Time for the period 2011-2013, in Second Time for the period 2014-2015.
As stated above current block period for tax exemption is 2014-2017.
In this period if u claim LTA two times and submit relevant proof alongwith LTA declaration form
u can save the TAX upto the limit of proof submitted by u. However, the LTA amount beyond the proof will be taxable.
Since u need funds, why pay tax if same can be saved.
U can consult ur HR dept. for the same.
Although many members can have objection on this, as arranging relevant docs leads to manuplation as well (in some way),
but this is the practical approach which in general followed by many of us.
From India, Delhi
LTA is an annual entitlement. There shud not be extra amount if u claim after Oct (pls refer ur co. policy).
However, u can save TAX if u claim LTA in two Phases (between Jun-Sep). First Time for the period 2011-2013, in Second Time for the period 2014-2015.
As stated above current block period for tax exemption is 2014-2017.
In this period if u claim LTA two times and submit relevant proof alongwith LTA declaration form
u can save the TAX upto the limit of proof submitted by u. However, the LTA amount beyond the proof will be taxable.
Since u need funds, why pay tax if same can be saved.
U can consult ur HR dept. for the same.
Although many members can have objection on this, as arranging relevant docs leads to manuplation as well (in some way),
but this is the practical approach which in general followed by many of us.
From India, Delhi
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