Hi,
Further to my reply, something I should have posted at the first instance -
If the employer pays for a private travel undertaken by the employee & his dependants, for eg. a private trip awarded as recognition for superior performance, then this private travel is taxable under FBT. Difference between LTA & private travel is if the conditions of LTA are not fulfilled during the private trip, then those trip expenses are taxable.
If the employee undertakes 2 trips in a year, and both meet the LTA conditions, then I guess it is upto the employee to declare which trip is under LTA & which is private trip paid for by employer. Obviously, in my opinion, in this case the more expensive trip should be declared as LTA, since LTA is non-taxable.
Regards,
Devjit