Dear All, Will you please clarify whether LTA comes under the purview of Fringe Benefit Tax? Thank you for your valuable inputs. Regards Praveen
From India
11From India
Hi, LTA is not a fringe benefit. It is one of the few tax-saving salary components still left, provided the required conditions are fulifilled. regards, Devjit
From India, Gurgaon
From India, Gurgaon
Hi Praveen, LTA will not come under FBT. But it is a tax saving instrument and can be claimed for expcemption in every alternate year. Regards, Sree
From United States
From United States
hi devjit is correct in saying that LTA does not come under the purview of FBT. Its only the conveyance, tour & travel for official purposes that comes under its scope. Regards Satyam Rastogi
hi
devjit is correct in saying that LTA does not come under the purview of FBT. Its only the conveyance, tour & travel reimbursements for official purposes that comes under its scope.
Regards
Satyam Rastogi
devjit is correct in saying that LTA does not come under the purview of FBT. Its only the conveyance, tour & travel reimbursements for official purposes that comes under its scope.
Regards
Satyam Rastogi
Hi,
Further to my reply, something I should have posted at the first instance -
If the employer pays for a private travel undertaken by the employee & his dependants, for eg. a private trip awarded as recognition for superior performance, then this private travel is taxable under FBT. Difference between LTA & private travel is if the conditions of LTA are not fulfilled during the private trip, then those trip expenses are taxable.
If the employee undertakes 2 trips in a year, and both meet the LTA conditions, then I guess it is upto the employee to declare which trip is under LTA & which is private trip paid for by employer. Obviously, in my opinion, in this case the more expensive trip should be declared as LTA, since LTA is non-taxable.
Regards,
Devjit
From India, Gurgaon
Further to my reply, something I should have posted at the first instance -
If the employer pays for a private travel undertaken by the employee & his dependants, for eg. a private trip awarded as recognition for superior performance, then this private travel is taxable under FBT. Difference between LTA & private travel is if the conditions of LTA are not fulfilled during the private trip, then those trip expenses are taxable.
If the employee undertakes 2 trips in a year, and both meet the LTA conditions, then I guess it is upto the employee to declare which trip is under LTA & which is private trip paid for by employer. Obviously, in my opinion, in this case the more expensive trip should be declared as LTA, since LTA is non-taxable.
Regards,
Devjit
From India, Gurgaon
Devajit, Thanks for your feedback. Will you be able to tell me which are the best solutions for an employee to save tax? I want to compare it with our system of salary breakup. Regards Praveen
From India
From India
Hi Praveen,
Devjit & others are right that LTA is out of purview of FBT, exemption of tax is allowable upto two years entitlement subject to production of bonafide travel bills as per the limits defined in the provisions of IT Act viz First AC train fare between the shortest distance between two points and actual travel bills whichever is lower is exempted from Tax and balance amount is added to taxable amount.
For tax savings structure, just use search facility on the top left..you would get the relevant postings with details shared by the members..
Regards,
Rajat
From India, Pune
Devjit & others are right that LTA is out of purview of FBT, exemption of tax is allowable upto two years entitlement subject to production of bonafide travel bills as per the limits defined in the provisions of IT Act viz First AC train fare between the shortest distance between two points and actual travel bills whichever is lower is exempted from Tax and balance amount is added to taxable amount.
For tax savings structure, just use search facility on the top left..you would get the relevant postings with details shared by the members..
Regards,
Rajat
From India, Pune
Dear Praveen,
LTA is not a fringe benefit.
It is a part of remuneration package paid annually. It ix taxable component. Ofcoruse, in the block of 4 years, an employee can avail LTA exemption for two journies (each to and fro). provided he submits his travel bills along with requistie tickets etc.
An employee should accompany his family (wife, children and dependent parets as applicable) on journey. Otherise, he is not eligible.
LTA can be claimed provided an employee should avail 7 days PL or no.of days as applicable in an organistion.
All the best
S.Amarnath
From India, Bangalore
LTA is not a fringe benefit.
It is a part of remuneration package paid annually. It ix taxable component. Ofcoruse, in the block of 4 years, an employee can avail LTA exemption for two journies (each to and fro). provided he submits his travel bills along with requistie tickets etc.
An employee should accompany his family (wife, children and dependent parets as applicable) on journey. Otherise, he is not eligible.
LTA can be claimed provided an employee should avail 7 days PL or no.of days as applicable in an organistion.
All the best
S.Amarnath
From India, Bangalore
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LTA (REDIFF).doc