Ravi5554
Asst.manager -hr
Pon1965
Construction
Knowledge - HR
Hr Executive
VVishal
Taxation

Dear All Seniors,
I am working with a small IT firm and now we would like to introduce the LTA benefits to our employees and for the same I need the senior's help.
- May I know what would be the minimum and maximum limit for the same and how one can reimburse it? what should be the ideal policy for that?
- If I am not wrong than one can reimburse it twice in a four years of duration and it should be applicable to travel within India only, correct? It does not include Hotel stay and food expenses.
-Can we reimburse the travel expenses of the spouse and child?(if yes, Is the LTA limit would be the same?)
- Only those employee can take LTA benefit who has completed one year in current company. is it?
Thank to all my seniors in advance for transferring to your knowledge to juniors like us!
26th August 2014 From India, Mumbai
Hi,

Leave Travel Allowance affects every salaried employee.

1.Tax exemption on LTA can only be claimed if you have applied for leave from your company for travel and if you actual make a journey.

2.LTA covers only the cost of travel for the trip. Hotel accommodation, food, etc. cannot be claimed for exemption.

3.LTA exemption covers you and your family. A family, under LTA, includes spouse, parents, siblings, and children. The cost of other relatives cannot be claimed.

4.LTA can be claimed twice in a block. The blocks are decided by government. They are 2010-2013, 2014-2017 and so on.

5.LTA can be claimed for travel through rail, air or any other public transport. However, you should keep in handy the proof of travel as it may be needed by your employer.

6.LTA covers only domestic travel.

7.LTA exemption is limited to the amount of LTA paid to the employee as part of the CTC. One cannot claim exemption beyond the actual LTA amount being provided.

8. both the spouses can claim the exemption on LTA from their employers. However, both of them cannot claim for the same journey.

9.In case you have only claimed LTA for one journey in a block, you can make another journey in the first year of the next block and claim it. In such a case, 3 journeys can be claimed for the block in total.

10.LTA cannot be claimed for the family if you as a claiming person are not included in the travel.
26th August 2014 From India, Mumbai
There is no such limit. ideally all travelling expenses including taxi fare from residence to Airport/R.Station and back can be reimbursed
It can be reimbursed every year, however, Income Tax benefit will be available only for 2 years in a block of 4 Years (IT Block 2013 to 2016). It can be outside India also. No reimbursement of Hotel & food expenses are permissible.
Reimbursement can be for the employee and his declared family which includes one spouse and legal children.
Yes, normally LTA benefit is granted only after one year\'s continuous service with the employer.
27th August 2014 From India
Hi Vishal, Are you sure that we can reimburse the LTA for out of india as well?
27th August 2014 From India, Mumbai
Can you explain which LTA policy states that we can claim international travel.
LTA can be claimed for travel through rail, air or any other public transport. However, you should keep in handy the proof of travel as it may be needed by your employer.
LTA covers only domestic travel.
27th August 2014 From India, Mumbai
Please find the 10 most commonly-asked questions on LTA. which am sure will resolve your query



1. When can we claim LTA?



Tax exemption on LTA can only be claimed if you have applied for leave from your company for travel and if you actual make a journey.



2. What does LTA cover?



LTA covers only the cost of travel for the trip. Hotel accommodation, food, etc. cannot be claimed for exemption.



3. Whom does it cover?



LTA exemption covers you and your family. A family, under LTA, includes spouse, parents, siblings, and children. The cost of other relatives cannot be claimed.



4. How many times can we claim LTA?



LTA can be claimed twice in a block. The blocks are decided by government. They are 2010-2013, 2014-2017 and so on.



5. What type of transport does LTA cover?



LTA can be claimed for travel through rail, air or any other public transport. However, you should keep in handy the proof of travel as it may be needed by your employer.



6. Is International travel permitted?



No, LTA covers only domestic travel.



7. What is the maximum limit on LTA exemption?



LTA exemption is limited to the amount of LTA paid to the employee as part of the CTC. One cannot claim exemption beyond the actual LTA amount being provided.



8. Can a husband-wife duo claim LTA?



Yes, both the spouses can claim the exemption on LTA from their employers. However, both of them cannot claim for the same journey.



9. Can we carry forward LTA?



Yes. In case you have only claimed LTA for one journey in a block, you can make another journey in the first year of the next block and claim it. In such a case, 3 journeys can be claimed for the block in total.



10. Can LTA be claimed if the actual claiming person has not travelled?



No, LTA cannot be claimed for the family if you as a claiming person are not included in the travel.



Conclusion



LTA exemption is available for the shortest route travelled and can be availed only for travel on working days. You can also claim LTA while filing your taxes. Proofs are not needed by the I-T department initially, but it is always better to keep them handy.
28th August 2014 From India, Ahmadabad
GOI has allowed tax benefits on LTA to promote domestic Tourism but not International Tourism. Pon
28th August 2014 From India, Lucknow
Hello, Thanks for your valuable suggestion but still having the same query. Ideally, What should be the limit for LTA to claim or on what base the employer decide the LTA amount.
28th August 2014 From India, Mumbai
No specific limit set by IT dept with regard to LTA and its tax exemption. Tax exemption is allowed on the actual cost of tour or LTA amount fixed by the employer, whichever is less. It is upto the employer to decide the ceiling of LTA.
Pon
28th August 2014 From India, Lucknow
Pon has aptly replied, there is no specific limit from I.T. dept. it is purely at the employer discretion as per the designation you hold and the salary breakup they want to give. You can treat it purely as part of CTC from the employer side and a tool for I.T. exemption
28th August 2014 From India, Ahmadabad
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