Had a query on LTA.
1. In my Organization LTA forms part of CTC which is paid anually. LTA is tax exempt once in two years. Can one not claim LTA in a year, carry forward it to the next year and get tax exemption on the entire amount. For eg. My LTA is 10000/-. I do not claim in 2006. Carry forward it to 2007. 2007 i claim tax benefit over the entire 20000(10000/- each in 2006& 2007). If I provide travel bills for the entire 20000/-. Will it be tax exempt. Can u provide me with some act which will help me understand the LTA rules.
If it is so, would it not be easy for an employee to claim LTA two times in four years and avail tax exemption on the whole amount.
2.Also wanted to know about the PL Rules for a new joinee. Is PL accumulated on joining and then availed to him on confirmation.
How is this accumalation done and when can be use the PL. How much has to be carried forward to next year and how many has to be encashed,
raga:-P
1. In my Organization LTA forms part of CTC which is paid anually. LTA is tax exempt once in two years. Can one not claim LTA in a year, carry forward it to the next year and get tax exemption on the entire amount. For eg. My LTA is 10000/-. I do not claim in 2006. Carry forward it to 2007. 2007 i claim tax benefit over the entire 20000(10000/- each in 2006& 2007). If I provide travel bills for the entire 20000/-. Will it be tax exempt. Can u provide me with some act which will help me understand the LTA rules.
If it is so, would it not be easy for an employee to claim LTA two times in four years and avail tax exemption on the whole amount.
2.Also wanted to know about the PL Rules for a new joinee. Is PL accumulated on joining and then availed to him on confirmation.
How is this accumalation done and when can be use the PL. How much has to be carried forward to next year and how many has to be encashed,
raga:-P