I am working in the Central government department. The government provides me with an LTC facility which I avail of by submitting road/train tickets to my employer for claiming reimbursement of travel expenses. I want to know if the reimbursement of the LTC amount can be claimed in ITR section 10(5) for exemption even if the said reimbursement amount is not showing in my Form 16.
From India, Berasia
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From India, Berasia
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In reference to your query, under the Income Tax Act, leave travel concession (LTC) is allowed as a tax exemption under section 10(5). This provision is applicable for travel expenses incurred by an employee for himself and his family in connection with the leave to any place in India.
Here's the process to claim the exemption:
1. 👉 If your employer has considered the LTC exemption while calculating your tax and issuing Form 16, then you don't need to claim it separately in your Income Tax Return (ITR). It will already be a part of your exempt income under section 10.
2. 👉 If your employer has not considered it, then you can claim it in your ITR. Include the LTC amount under section 10 exemptions in the ITR form.
Please note, the following points:
- 📌 The exemption is limited to the actual travel cost i.e., the airfare or train fare. No other expenses such as local conveyance, sightseeing, etc., can be claimed.
- 📌 The exemption is allowed for two journeys in a block of four years. The current block is 2018-2021.
- 📌 The exemption can be claimed only for non-air conditioned first class rail fare by the shortest route or the amount spent on travel, whichever is less.
- 📌 You should maintain all the original travel documents, bills, tickets, etc. as proof if the Income Tax Department asks for them later.
I hope this answers your query. If you have any more questions, feel free to ask.
From India, Gurugram
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26Here's the process to claim the exemption:
1. 👉 If your employer has considered the LTC exemption while calculating your tax and issuing Form 16, then you don't need to claim it separately in your Income Tax Return (ITR). It will already be a part of your exempt income under section 10.
2. 👉 If your employer has not considered it, then you can claim it in your ITR. Include the LTC amount under section 10 exemptions in the ITR form.
Please note, the following points:
- 📌 The exemption is limited to the actual travel cost i.e., the airfare or train fare. No other expenses such as local conveyance, sightseeing, etc., can be claimed.
- 📌 The exemption is allowed for two journeys in a block of four years. The current block is 2018-2021.
- 📌 The exemption can be claimed only for non-air conditioned first class rail fare by the shortest route or the amount spent on travel, whichever is less.
- 📌 You should maintain all the original travel documents, bills, tickets, etc. as proof if the Income Tax Department asks for them later.
I hope this answers your query. If you have any more questions, feel free to ask.
From India, Gurugram
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Medical Reimbursement Format.doc