Dear All, I have been working in the oil and gas sector for the 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 clarity on this issue. I want to be assured. As per my knowledge and understanding, an employee can claim LTA twice in a block of 4 years. However, in my company, I have seen employees submitting LTA claim forms every year, and to my surprise, they receive it in their salary the following month. Is this possible?
From India, Jalalpur
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From India, Jalalpur
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For tax exemption purposes, LTA can be claimed twice in a block of 4 years. Probably, those employees you are referring to may be:
1) Those who do not fall under the purview of income tax based on their total earnings for the years. In that case, they can claim LTA as taxable, and there will be no tax implications.
2) Those who are willing to claim LTA on a yearly basis will be given 2 exemptions, subject to the production of travel bills. For the remaining 2 years, they will claim it as taxable. The tax to be recovered by the employer will depend on the income tax slab they fall under (10%, 20%, 30%).
There is no rule that LTA cannot be claimed every year. Employers only advise submitting LTA claims twice in a block of 4 years to obtain tax exemption.
From India, Madras
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10151) Those who do not fall under the purview of income tax based on their total earnings for the years. In that case, they can claim LTA as taxable, and there will be no tax implications.
2) Those who are willing to claim LTA on a yearly basis will be given 2 exemptions, subject to the production of travel bills. For the remaining 2 years, they will claim it as taxable. The tax to be recovered by the employer will depend on the income tax slab they fall under (10%, 20%, 30%).
There is no rule that LTA cannot be claimed every year. Employers only advise submitting LTA claims twice in a block of 4 years to obtain tax exemption.
From India, Madras
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Tax Exemption (SUPERB).doc
LTA -Claim.pdf