Dear Seniors, I searched on Cite, but could not find anything related to my query.
Brief about our company policy:
We follow the same block of 4 years, where 1 and 3 are taxable(where bills are required and if not then total taxable) and 2 and 4 are nontaxable (where no bills are required)
Q 1: Employees want to make yearly entitled LTA pay on monthly basis(Annual LTA/12) -- Can we do or not? If Yes, then incase any employee produce the actual bill for travel during the calendar year then s/he will get Tax benefit on produced bills and else will be taxable. Eg. 10000 yearly entitlement and employee produced tickets for 5000 then his 5000 thousand will be taxable and 5000 thousand will nontax
Ans:
Q 2: In case the employee did not claim LTA in Nontaxable year and he claims LTA in next year Taxable year without bills, will the total accumulated amount be liable for Tax or previous year nontaxable amount will be exempted?
Brief about our company policy:
We follow the same block of 4 years, where 1 and 3 are taxable(where bills are required and if not then total taxable) and 2 and 4 are nontaxable (where no bills are required)
Q 1: Employees want to make yearly entitled LTA pay on monthly basis(Annual LTA/12) -- Can we do or not? If Yes, then incase any employee produce the actual bill for travel during the calendar year then s/he will get Tax benefit on produced bills and else will be taxable. Eg. 10000 yearly entitlement and employee produced tickets for 5000 then his 5000 thousand will be taxable and 5000 thousand will nontax
Ans:
Q 2: In case the employee did not claim LTA in Nontaxable year and he claims LTA in next year Taxable year without bills, will the total accumulated amount be liable for Tax or previous year nontaxable amount will be exempted?