Dear All,
Greetings..
I have been working in oil and gas sector for past few years, but to my surprise this is the first time I'm witnessing this practice. Maybe this is fine but I still want to get a clarity upon this issue. I want to be assured. As per my knowledge and understanding an employee can claim for LTA twice in block of 4 years. But in my company I have seen employees submitting LTA Claim forms every year and to my surprise they get it in their salary the next month. Is it possible?
From India, Jalalpur
Greetings..
I have been working in oil and gas sector for past few years, but to my surprise this is the first time I'm witnessing this practice. Maybe this is fine but I still want to get a clarity upon this issue. I want to be assured. As per my knowledge and understanding an employee can claim for LTA twice in block of 4 years. But in my company I have seen employees submitting LTA Claim forms every year and to my surprise they get it in their salary the next month. Is it possible?
From India, Jalalpur
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Hi Kingkashyap,
Yes for tax exemption purpose LTA can be claimed twice in a block of 4 years. Probably those employees whom you are referring may be
1) those who are not come under the purview of income tax based on their total earning for the years. In that case they can claim LTA as taxable and no tax implications will be there.
2) those who are willing to claim LTA on yearly basis and they will be given 2 exemptions, subject to production of travel bills and remaining 2 years they will claim as taxable. Based on the Income tax slab they fall under (10%,20% ,30%) tax will be recovered by the employer.
There is no rule that LTA cannot be claimed every year. Only to get tax exemption employer advise to submit LTA claim twice in block of 4 years.
From India, Madras
919Yes for tax exemption purpose LTA can be claimed twice in a block of 4 years. Probably those employees whom you are referring may be
1) those who are not come under the purview of income tax based on their total earning for the years. In that case they can claim LTA as taxable and no tax implications will be there.
2) those who are willing to claim LTA on yearly basis and they will be given 2 exemptions, subject to production of travel bills and remaining 2 years they will claim as taxable. Based on the Income tax slab they fall under (10%,20% ,30%) tax will be recovered by the employer.
There is no rule that LTA cannot be claimed every year. Only to get tax exemption employer advise to submit LTA claim twice in block of 4 years.
From India, Madras
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