Maxium limit of LTA Payment to employee - income tax.. CiteHR
Home > Human Resource Section > Employee Compensation & Benefits

pratapepp Started The Discussion:

Dear Sir, Please advice me How much we can pay the maximum LTA to the employee and whether it is taxable in every year ? Pratape

ms14 -  Member Since: Feb 2008
As far my knowledge goes there is no specific limit to the payment of LTA. It is just a matter of your company's decision / salary breakup. However LTA is exempt while calculating I tax, only to the extent of "minimum of the following"
1. Amount of expenses actually incurred by the employee for LTA (for travel - only air,rail fare - not any other like boarding & lodging)
2. The amount of LTA received by the employee

However there are various provisions in the IT act regarding this above. A few are mentioned for your immediate reference :
* LTA can be claimed for only 2 journeys in a period of 4 calender years (called the block - the current block is 2006-2009)
* The Employee should provide the tickets, boarding passes as proof of journey to the employer & the employer has to retain it.

For further information you should consult a Income tax ready reckoner.


  • Do not post anything derogatory about any company or person.
  • Sharing articles from other websites should be done by posting a link to the original article.
  • To discuss sensitive issues create a pseudo/anonymous account.
  • Please avoid repeat posting your company profile - such accounts are removed automatically.
  • Found This Useful? +Vote Up This Via Google.  

    Why Vote? User validation is extremely important for good content to prosper.
    Disclaimer: This network and the advice provided in good faith by our members only facilitates as a direction towards the actions necessary. The advice should be validated by proper consultation with a certified professional. The network or the members providing advice cannot be held liable for any consequences, under any circumstances.

    3M Users, 100K+ Documents & 450K+ Discussions

    Share »

    Cite.Co helps people come together to solve each other's problems on all aspects of professional life.
    Community Support & Professional Insights. Login or Register.

    About Us - Advertise - Contact Us - RSS   On Google+  
    All trademarks and copyrights held by respective owners. Member comments are owned by the poster.
    Privacy Policy | Disclaimer | Terms Of Service
    Facebook Page | Follow Us On Twitter | Linkedin Network