Dear Seniors,
As per IT Act, LTA is exempted 2 times in a block of 4 years. But many employees carry forward LTA and claim two times in 4 yrs block and avail IT exemption for 2 times which is as good as availing exemption for 4 yrs.
Is this the right method?
As per understanding, iam of the view that LTA amount can be claimed by combining 2 yrs together but IT exemption is to be claimed only for 1 yr LTA.
Request to clarify the same?
Thank you
From India, Hyderabad
4As per IT Act, LTA is exempted 2 times in a block of 4 years. But many employees carry forward LTA and claim two times in 4 yrs block and avail IT exemption for 2 times which is as good as availing exemption for 4 yrs.
Is this the right method?
As per understanding, iam of the view that LTA amount can be claimed by combining 2 yrs together but IT exemption is to be claimed only for 1 yr LTA.
Request to clarify the same?
Thank you
From India, Hyderabad
LTA claim:-
There are predetermined blocks of four calendar years; the first block began in 1986 to 1989, the next block was 1990 to 1993 and so on. You can claim exemption for up to two journeys in a block of four calendar years.
You can claim exemption for up to two journeys in a block of four calendar years. The current block is 2010 to 2013.
If you are not able to make a claim in a block, there is a carry forward facility available. You can carry forward one journey, that too only in the first calendar year in the next block of four years So in such a case, in the next block, you can claim three LTA exemptions in total.
From India, Kota
There are predetermined blocks of four calendar years; the first block began in 1986 to 1989, the next block was 1990 to 1993 and so on. You can claim exemption for up to two journeys in a block of four calendar years.
You can claim exemption for up to two journeys in a block of four calendar years. The current block is 2010 to 2013.
If you are not able to make a claim in a block, there is a carry forward facility available. You can carry forward one journey, that too only in the first calendar year in the next block of four years So in such a case, in the next block, you can claim three LTA exemptions in total.
From India, Kota
Dear Vijaya,
LTA claim gets exempted twice in a block of 4 years.For example considering the block as calendar years 2010, 2011, 2012, 2013. LTA for 2010 & 2011 claimed in 2011 and LTA for 2012 & 2013 claimed in 2013 is exempted from tax. In other words LTA claimed in such a manner for all the four calendar years referred above gets exempted.
However if the LTA is claimed every calendar year then the LTA claimed for 2010 & 2011 alone is exempted and the LTA claimed for 2012 & 2013 is taxed. This is because the first two claims (2010 & 2011) is considered as having claimed twice in the block and the third and fourth claim is taxed.
The important fact is in anycase the employee needs to furnish proof of having undertaken the travel during the period he was on LTA leave. Claims relating to Boarding & Lodging cannot be considered for exemption.
Trust the matter is clear.
M.V.Kannan
From India, Madras
LTA claim gets exempted twice in a block of 4 years.For example considering the block as calendar years 2010, 2011, 2012, 2013. LTA for 2010 & 2011 claimed in 2011 and LTA for 2012 & 2013 claimed in 2013 is exempted from tax. In other words LTA claimed in such a manner for all the four calendar years referred above gets exempted.
However if the LTA is claimed every calendar year then the LTA claimed for 2010 & 2011 alone is exempted and the LTA claimed for 2012 & 2013 is taxed. This is because the first two claims (2010 & 2011) is considered as having claimed twice in the block and the third and fourth claim is taxed.
The important fact is in anycase the employee needs to furnish proof of having undertaken the travel during the period he was on LTA leave. Claims relating to Boarding & Lodging cannot be considered for exemption.
Trust the matter is clear.
M.V.Kannan
From India, Madras
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Note on HRA & LTA Exemption.doc