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
Acknowledge(0)
Amend(0)
8From India, Delhi
Acknowledge(0)Amend(0)
Dear Friend,
I have a query about the Leave Travel Allowance (LTA) which are as follows:
Query 1:
My date of joining is 11-Feb-2000. Till date, I have not claimed LTA. Now, in which financial year can I claim it 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, can I avail the next year 06-07 as non-taxable?
Query 3:
How will the LTA be carried forward to the next year, and can it be taken as non-taxable?
Query 4:
What are the rules and regulations for claiming LTA?
Dorin
Email id - dorinn@rediffmail.com
From India, Mumbai
Acknowledge(0)Amend(0)
I have a query about the Leave Travel Allowance (LTA) which are as follows:
Query 1:
My date of joining is 11-Feb-2000. Till date, I have not claimed LTA. Now, in which financial year can I claim it 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, can I avail the next year 06-07 as non-taxable?
Query 3:
How will the LTA be carried forward to the next year, and can it be taken as non-taxable?
Query 4:
What are the rules and regulations for claiming LTA?
Dorin
Email id - dorinn@rediffmail.com
From India, Mumbai
Acknowledge(0)Amend(0)
Dear Friend,
I have a query about the Leave Travel Allowance (LTA) which is:
Query 1:
My date of joining is 11-Feb-2000. Until now, I have not claimed LTA. In which financial year can I claim it as taxable and non-taxable? Can I claim from 11-Feb-2000 to 31-Mar-2007?
Answer:
Any allowance is taxable under the IT Act. Therefore, leave travel allowance is taxable. If leave travel allowance is termed as leave travel assistance or leave travel reimbursement, the same shall be non-taxable if the scheme provides for reimbursement of expenses.
Query 2:
If I take LTA for 05-06 as non-taxable, can I avail of the next year 06-07 as non-taxable?
Answer:
As above.
Query 3:
How will the LTA be carried forward to the next year, and can it be taken as non-taxable?
Answer:
It depends on the scheme formulated.
Query 4:
What are the rules and regulations for claiming LTA?
Answer:
There are no standard rules. Each company follows certain rules, and in your case, if you tell me the system, then I can reply.
Thank you.
From India, Madras
Acknowledge(0)Amend(0)
I have a query about the Leave Travel Allowance (LTA) which is:
Query 1:
My date of joining is 11-Feb-2000. Until now, I have not claimed LTA. In which financial year can I claim it as taxable and non-taxable? Can I claim from 11-Feb-2000 to 31-Mar-2007?
Answer:
Any allowance is taxable under the IT Act. Therefore, leave travel allowance is taxable. If leave travel allowance is termed as leave travel assistance or leave travel reimbursement, the same shall be non-taxable if the scheme provides for reimbursement of expenses.
Query 2:
If I take LTA for 05-06 as non-taxable, can I avail of the next year 06-07 as non-taxable?
Answer:
As above.
Query 3:
How will the LTA be carried forward to the next year, and can it be taken as non-taxable?
Answer:
It depends on the scheme formulated.
Query 4:
What are the rules and regulations for claiming LTA?
Answer:
There are no standard rules. Each company follows certain rules, and in your case, if you tell me the system, then I can reply.
Thank you.
From India, Madras
Acknowledge(0)Amend(0)
Could anyone please tell me how Leave Travel Allowance is different from Leave Travel Assistance?
Also, in the case of Leave Travel Allowance, can it be claimed tax-exempt for 2 consecutive years in a block of 4 years defined by the government of India? Are these blocks fixed for all the companies?
Regards, Simran
From Germany
Acknowledge(0)Amend(0)
Also, in the case of Leave Travel Allowance, can it be claimed tax-exempt for 2 consecutive years in a block of 4 years defined by the government of India? Are these blocks fixed for all the companies?
Regards, Simran
From Germany
Acknowledge(0)Amend(0)
LTA block jan 2006-dec 2009. I have travelled in Jan 07 but did not claim LTA exemption in FY 2006-2007, Can I claim my 1st exemption (travel of Jan 07) in FY 2007-2008 ? Regards, Bharati
Acknowledge(0)Amend(0)
Acknowledge(0)Amend(0)
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 traveled. However, international travel is not valid. You must have traveled 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 organization 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 organization but also from your former employer if the concession is lying unutilized. 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, 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 to Kerala, then Delhi, and back to Mumbai. If you take a direct connection, you will be eligible for LTA. Mumbai to Kerala to Delhi to Mumbai: LTA covered. But if you throw in Hyderabad, then it goes out of gear. Mumbai to Thiruvananthapuram: LTA covered. Thiruvananthapuram to Hyderabad to Delhi: LTA not covered. Delhi to Mumbai: LTA covered.
10. If your LTA is not utilized, 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 the 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
Acknowledge(0)Amend(0)
1. You can get LTA only if you have applied for leave from your company and have actually traveled. However, international travel is not valid. You must have traveled 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 organization 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 organization but also from your former employer if the concession is lying unutilized. 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, 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 to Kerala, then Delhi, and back to Mumbai. If you take a direct connection, you will be eligible for LTA. Mumbai to Kerala to Delhi to Mumbai: LTA covered. But if you throw in Hyderabad, then it goes out of gear. Mumbai to Thiruvananthapuram: LTA covered. Thiruvananthapuram to Hyderabad to Delhi: LTA not covered. Delhi to Mumbai: LTA covered.
10. If your LTA is not utilized, 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 the 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
Acknowledge(0)Amend(0)
Hi, Just wanted to know if the % of reimbursement, is it standard 100% or varies as per company norms?
From India, Pune
Acknowledge(0)Amend(0)
From India, Pune
Acknowledge(0)Amend(0)
Dear All,
Thanks for the information regarding the LTA Scheme.
Can you please clarify the LTA eligibility? Here are some points to consider:
Firstly, we are following the Financial Year for HLTA. If an employee completes 6 months in the FY, are they eligible to claim full LTA for that FY?
Also, if an employee resigns in the same FY after claiming LTA, what would be the procedure for deducting the amount?
Regards,
B. Somasekhar
09396992055
From India, Hyderabad
Acknowledge(0)Amend(0)
Thanks for the information regarding the LTA Scheme.
Can you please clarify the LTA eligibility? Here are some points to consider:
Firstly, we are following the Financial Year for HLTA. If an employee completes 6 months in the FY, are they eligible to claim full LTA for that FY?
Also, if an employee resigns in the same FY after claiming LTA, what would be the procedure for deducting the amount?
Regards,
B. Somasekhar
09396992055
From India, Hyderabad
Acknowledge(0)Amend(0)
Hi,
I have a big query here on LTA tax exemption... Somebody please help me...
I have applied for LTA in my present company and got tax exemption by submitting my travel bill for the year 2007-2008. For this year, i.e., 2008-2009, I again applied for LTA, and my company's finance people are not accepting LTA bills. They say that since I worked for two years in my present organization, I can apply for LTA only one time. But as per rules, I believe I can be tax-exempt for two times in the period (2005-2009).
I have argued many times, but my finance people are asking for proof that I haven't gone for LTA tax exemption in my previous company. How can I provide such proof? My CTC in my previous company is below the tax slab, so I have not produced an LTA bill, but I remember I claimed the money from my previous company.
Now, I need proof that should state that I have not claimed LTA tax exemption in my previous company. It's difficult to contact my previous company and ask for details.
Can someone tell me how I can get rid of this and be LTA tax-exempt for the current year 2008-2009?
From India
Acknowledge(0)Amend(0)
I have a big query here on LTA tax exemption... Somebody please help me...
I have applied for LTA in my present company and got tax exemption by submitting my travel bill for the year 2007-2008. For this year, i.e., 2008-2009, I again applied for LTA, and my company's finance people are not accepting LTA bills. They say that since I worked for two years in my present organization, I can apply for LTA only one time. But as per rules, I believe I can be tax-exempt for two times in the period (2005-2009).
I have argued many times, but my finance people are asking for proof that I haven't gone for LTA tax exemption in my previous company. How can I provide such proof? My CTC in my previous company is below the tax slab, so I have not produced an LTA bill, but I remember I claimed the money from my previous company.
Now, I need proof that should state that I have not claimed LTA tax exemption in my previous company. It's difficult to contact my previous company and ask for details.
Can someone tell me how I can get rid of this and be LTA tax-exempt for the current year 2008-2009?
From India
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
EMPLOYEE SALARY INCOME TAX CALCULATION.xls x
Tax Exemption (SUPERB).doc