Please give the deatils of 1. How to claim LTA 2.How to claim conveyence allowance with procedures as per income tax rules
From India, Madras
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From India, Madras
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Hi Vijaykumar,
Please give the details of:
1. How to claim LTA
2. How to claim conveyance allowance
with procedures as per income tax rules.
Leave Travel Concession:
WHAT ARE THE LIMITS OF EXEMPTION IN L.T.C. is granted to an employee in connection with the journey on leave by him or his family. It is exempt from income tax within certain limits as under:
(a) Where the journey is performed by rail; railway fare in Second AC class by the shortest route to the destination.
(b) Where places of origin and destination are connected by rail but the journey is performed by any other mode than Second AC class fare by the shortest route to the place of the destination.
(c) Where the place of origin of the journey and destination, or part thereof, are not connected by rail and the journey is performed by any other transport; then
(i) If a recognized public transport system exists between such places, the first class or deluxe class fare of such transport by the shortest route, or,
(ii) If in another case, Second AC class fare for the distance of the journey by the shortest route, as if the journey has been performed by rail.
Exemption will, in no case, exceed the actual expenditure incurred in the performance of the journey.
Leave Travel Concession Rules have been amended on the recommendation of the Fifth Pay Commission to extend the facility of travel by air economy Y-Class to certain categories of employees of the Central Government with effect from 1st October 1997.
Consequently, where the journey is performed on or after 1st October 1997 by air, an amount not exceeding the air economy fare of the National Carrier by the shortest route to the place of destination.
Also, where the entitlement was previously for air-conditioned Second Class Rail fare, it has been upgraded to air-conditioned First Class Rail fare. [L.T. (First Amendment) Rules 1998, O.O.I. Gazette Notification No. S.O. 34(E) dt.
12th Jan. 1998; CBDTF.No. 142/85/97-TPL No. 105021].
WILL THIS CHANGE APPLY ONLY TO GOVERNMENT EMPLOYEES OR DOES IT APPLY ALSO TO EMPLOYEES OF OTHER SECTORS?
The change applies to all employees.
HOW MANY TIMES CAN EXEMPTION BE CLAIMED?
The assessee can claim exemption in respect of two such journeys in a block of 4 years. For this purpose, the first block of 4 years was the calendar year 1986-89. For a block of 4 years, the journey performed in the first year following that block year is also eligible for exemption. Also, such a journey will not be taken into account for determining the tax exemption for the succeeding block.
TO QUALIFY FOR EXEMPTION IS IT NECESSARY TO PERFORM ACTUAL JOURNEY?
Yes, certainly. In case the L.T.C. is encashed without actually performing the journey, the entire amount received by the employee would be taxed in his hands.
WHAT IS THE DEFINITION OF FAMILY FOR THIS PURPOSE?
For this purpose, "family" means:
(i) The spouse and children of the individual; and
(ii) The parents, brothers, and sisters of the individual or any of them, wholly or mainly dependent on the individual.
Conveyance allowance: It is exempted from Tax if it doesn't exceed Rs 800 per month, viz Rs 9600 p.a.
Regards,
Rajat
From India, Pune
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108Please give the details of:
1. How to claim LTA
2. How to claim conveyance allowance
with procedures as per income tax rules.
Leave Travel Concession:
WHAT ARE THE LIMITS OF EXEMPTION IN L.T.C. is granted to an employee in connection with the journey on leave by him or his family. It is exempt from income tax within certain limits as under:
(a) Where the journey is performed by rail; railway fare in Second AC class by the shortest route to the destination.
(b) Where places of origin and destination are connected by rail but the journey is performed by any other mode than Second AC class fare by the shortest route to the place of the destination.
(c) Where the place of origin of the journey and destination, or part thereof, are not connected by rail and the journey is performed by any other transport; then
(i) If a recognized public transport system exists between such places, the first class or deluxe class fare of such transport by the shortest route, or,
(ii) If in another case, Second AC class fare for the distance of the journey by the shortest route, as if the journey has been performed by rail.
Exemption will, in no case, exceed the actual expenditure incurred in the performance of the journey.
Leave Travel Concession Rules have been amended on the recommendation of the Fifth Pay Commission to extend the facility of travel by air economy Y-Class to certain categories of employees of the Central Government with effect from 1st October 1997.
Consequently, where the journey is performed on or after 1st October 1997 by air, an amount not exceeding the air economy fare of the National Carrier by the shortest route to the place of destination.
Also, where the entitlement was previously for air-conditioned Second Class Rail fare, it has been upgraded to air-conditioned First Class Rail fare. [L.T. (First Amendment) Rules 1998, O.O.I. Gazette Notification No. S.O. 34(E) dt.
12th Jan. 1998; CBDTF.No. 142/85/97-TPL No. 105021].
WILL THIS CHANGE APPLY ONLY TO GOVERNMENT EMPLOYEES OR DOES IT APPLY ALSO TO EMPLOYEES OF OTHER SECTORS?
The change applies to all employees.
HOW MANY TIMES CAN EXEMPTION BE CLAIMED?
The assessee can claim exemption in respect of two such journeys in a block of 4 years. For this purpose, the first block of 4 years was the calendar year 1986-89. For a block of 4 years, the journey performed in the first year following that block year is also eligible for exemption. Also, such a journey will not be taken into account for determining the tax exemption for the succeeding block.
TO QUALIFY FOR EXEMPTION IS IT NECESSARY TO PERFORM ACTUAL JOURNEY?
Yes, certainly. In case the L.T.C. is encashed without actually performing the journey, the entire amount received by the employee would be taxed in his hands.
WHAT IS THE DEFINITION OF FAMILY FOR THIS PURPOSE?
For this purpose, "family" means:
(i) The spouse and children of the individual; and
(ii) The parents, brothers, and sisters of the individual or any of them, wholly or mainly dependent on the individual.
Conveyance allowance: It is exempted from Tax if it doesn't exceed Rs 800 per month, viz Rs 9600 p.a.
Regards,
Rajat
From India, Pune
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Hi,
One more input: where the employee receives a car facility, conveyance exemption cannot be given to him; and where he is physically handicapped, the exemption can go up to Rs. 1600/- per month or the actual allowance received, whichever is less.
Thanks,
Hema
From India,
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One more input: where the employee receives a car facility, conveyance exemption cannot be given to him; and where he is physically handicapped, the exemption can go up to Rs. 1600/- per month or the actual allowance received, whichever is less.
Thanks,
Hema
From India,
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if the employee’s family go alon(without employee) for a tour, can the employee claim LTC?
From India, Bangalore
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From India, Bangalore
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LTC can be extended to the family members of an employee separately. This can be treated as a separate entity while availing such a facility. However, the admissibility criteria should be as per the policy of the organization. That means there should be some clear definition about the term 'family member', dependents, etc.
Ajay
From Brazil, Maceió
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Ajay
From Brazil, Maceió
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Hi, Need to know some details about LTA. Does it require the employee to take some minimum number of leaves? Would really appreciate a quick reply! Regards, Deepti
From India, Pune
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From India, Pune
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Hi Deepti,
No, there is no minimum number of leaves as per the law. You can claim LTA for any number of leaves. Of course, to claim exemption, you have to actually undertake travel and submit the bills.
Regards,
Devjit
From India, Gurgaon
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No, there is no minimum number of leaves as per the law. You can claim LTA for any number of leaves. Of course, to claim exemption, you have to actually undertake travel and submit the bills.
Regards,
Devjit
From India, Gurgaon
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Hi All,
I have a further query. My CTC includes a certain amount as LTA, but we are paid the actual money every alternate year. I think this is wrong...? As far as I am aware, the concept of alternate years applies to the TAX EXEMPTION, not actual entitlement. It means an employee is supposed to get the LTA amount every year, but he can claim exemption 2 times in a block of 4 years, usually in alternate years.
Please clarify/confirm this.
Regards,
Devjit
From India, Gurgaon
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I have a further query. My CTC includes a certain amount as LTA, but we are paid the actual money every alternate year. I think this is wrong...? As far as I am aware, the concept of alternate years applies to the TAX EXEMPTION, not actual entitlement. It means an employee is supposed to get the LTA amount every year, but he can claim exemption 2 times in a block of 4 years, usually in alternate years.
Please clarify/confirm this.
Regards,
Devjit
From India, Gurgaon
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Thank you so much for your reply, Devjit.
Regarding your query, you may check the following link: http://in.rediff.com/getahead/2006/jul/11lta.htm
As per this article - "If LTA is not utilized, it gets added to the entire salary. And then you are taxed on it."
Regards,
Deepti
From India, Pune
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Regarding your query, you may check the following link: http://in.rediff.com/getahead/2006/jul/11lta.htm
As per this article - "If LTA is not utilized, it gets added to the entire salary. And then you are taxed on it."
Regards,
Deepti
From India, Pune
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I have one more query.
For females, I believe there are no tax deductions up to CTC 1.5L. Is it possible to claim the whole of LTA or Medical Reimbursement without any proper bills or traveling? Is it subject to tax?
From India, New Delhi
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For females, I believe there are no tax deductions up to CTC 1.5L. Is it possible to claim the whole of LTA or Medical Reimbursement without any proper bills or traveling? Is it subject to tax?
From India, New Delhi
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Dear Prathima,
You may claim medical reimbursement and LTA amounts without providing proper bills or actually undertaking travel. However, in that case, both reimbursements will be taxable. If claimed by submitting proper bills and actually going on a trip within India, both reimbursements will be exempt from tax.
Regards,
Deepti
From India, Pune
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You may claim medical reimbursement and LTA amounts without providing proper bills or actually undertaking travel. However, in that case, both reimbursements will be taxable. If claimed by submitting proper bills and actually going on a trip within India, both reimbursements will be exempt from tax.
Regards,
Deepti
From India, Pune
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Hi,
For a female, there are no tax deductions up to 1.35L. If including LTA causes their CTC to fall below the above-mentioned limit, is it possible to claim the whole of LTA without actually taking a journey? Are there any tax deductions for that?
Kindly clarify.
From India, New Delhi
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For a female, there are no tax deductions up to 1.35L. If including LTA causes their CTC to fall below the above-mentioned limit, is it possible to claim the whole of LTA without actually taking a journey? Are there any tax deductions for that?
Kindly clarify.
From India, New Delhi
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Hi,
I have a query regarding LTA. I made a trip to South India with a private agency. It was a package tour consisting of 5 different places. I was accompanied by my father, mother, and sister. Since it was an 8-day package tour where we traveled to different places, and the single tour company took us to all the locations, can I claim LTA with those tickets?
Thanks in advance,
Prashanth C.P
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I have a query regarding LTA. I made a trip to South India with a private agency. It was a package tour consisting of 5 different places. I was accompanied by my father, mother, and sister. Since it was an 8-day package tour where we traveled to different places, and the single tour company took us to all the locations, can I claim LTA with those tickets?
Thanks in advance,
Prashanth C.P
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Dear All,
As per my understanding, 2 LTA cannot be claimed in a single year. However, I have a doubt regarding the same. Suppose an employee claims 1 LTA for the block of 2006-2009. Now, 1 LTA will be carried forward to the next block, i.e., 2010-2013, and the employee would have to take the carried forward LTA in 2010 as per LTA regulations. Now, if the employee claims the LTA of the block 2010-2013 in 2010 itself, they would have 2 LTA in 2010. So, is it allowed?
Kindly reply at the earliest as I need to add the same to our revised policy for the coming financial year.
From India, Mumbai
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As per my understanding, 2 LTA cannot be claimed in a single year. However, I have a doubt regarding the same. Suppose an employee claims 1 LTA for the block of 2006-2009. Now, 1 LTA will be carried forward to the next block, i.e., 2010-2013, and the employee would have to take the carried forward LTA in 2010 as per LTA regulations. Now, if the employee claims the LTA of the block 2010-2013 in 2010 itself, they would have 2 LTA in 2010. So, is it allowed?
Kindly reply at the earliest as I need to add the same to our revised policy for the coming financial year.
From India, Mumbai
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Dear Sir,
If I take LTA in Jan '08, can I get an exemption for the assessment year 2008-2009? Furthermore, if I will go on LTA in Oct '08, can I claim for exemption in the assessment year 2009-2010?
Please reply immediately.
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If I take LTA in Jan '08, can I get an exemption for the assessment year 2008-2009? Furthermore, if I will go on LTA in Oct '08, can I claim for exemption in the assessment year 2009-2010?
Please reply immediately.
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Hi, I have been working with the company since August '07. On the 22nd of this month, I will complete 2 years. So far, I have neither taken leave nor claimed LTA. Now I want to know whether my LTA gets accumulated or gets lapsed after a certain number of years.
From India, Pune
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From India, Pune
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LTA can be claimed for 2 years in a block of 4 years for IT exemption. You have to avail a minimum of 6 days of EL or PL as the case may be. The ceiling is restricted up to 2 times your basic per year of travel. The mode can be the shortest route in Air, Rail, or tour operators.
Conveyance - up to Rs. 800 p.m. tax-free without proof. If you own a two-wheeler or four-wheeler, Rs. 12,000 p.m. is tax-free for fuel & maintenance subject to the production of proof.
From India, Lucknow
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Conveyance - up to Rs. 800 p.m. tax-free without proof. If you own a two-wheeler or four-wheeler, Rs. 12,000 p.m. is tax-free for fuel & maintenance subject to the production of proof.
From India, Lucknow
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Hi,
The information provided above was very helpful. I am working in a firm as a management trainee. I have been given a task of making policy changes. I wanted help on the documents required to claim for LTA. Please do help me at the earliest.
Regards,
Swati
From India, Pune
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The information provided above was very helpful. I am working in a firm as a management trainee. I have been given a task of making policy changes. I wanted help on the documents required to claim for LTA. Please do help me at the earliest.
Regards,
Swati
From India, Pune
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While going through the posts on LTA, I came across that LTA can be claimed for the Current Block Jan 2006 to 31 December 2009. In my case, I will be leaving on 25th December '09 by Air to Jammu and returning back from Srinagar by Air on Jan 1, 2010. I have the following queries regarding my LTA claim:
1. Will I be able to claim the return Airfare since the same would fall in Jan 2010? Would that be construed as the next block for the purpose of claiming LTA in my Income tax return?
2. If the above reply is no for the return as it is Jan 2010, then in that case, can I claim the return fare for my next year's return i.e., FY2010-11?
3. Also, since I will be claiming only 1 LTA in the current 2006-2009 block of 4 years, can I carry forward one more claim in the next year?
4. If the above answer is yes, can I claim 2 LTAs for next year, that is, the return journey or 1 LTA as c/fwd and 1 as the eligible one for next year?
5. Is it mandatory to claim LTA in alternate years? Why can't it be claimed twice in any 2 years out of the block of four years?
Request point-wise replies to the above queries.
Regards,
Harsha
From India
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1. Will I be able to claim the return Airfare since the same would fall in Jan 2010? Would that be construed as the next block for the purpose of claiming LTA in my Income tax return?
2. If the above reply is no for the return as it is Jan 2010, then in that case, can I claim the return fare for my next year's return i.e., FY2010-11?
3. Also, since I will be claiming only 1 LTA in the current 2006-2009 block of 4 years, can I carry forward one more claim in the next year?
4. If the above answer is yes, can I claim 2 LTAs for next year, that is, the return journey or 1 LTA as c/fwd and 1 as the eligible one for next year?
5. Is it mandatory to claim LTA in alternate years? Why can't it be claimed twice in any 2 years out of the block of four years?
Request point-wise replies to the above queries.
Regards,
Harsha
From India
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As per my knowledge, LTA is different from LTC. Most government sectors provide LTC. Coming to LTA, as per the rules, 4 to 5 days of leave are applicable for a year, and it comes under income tax, i.e., 33%. LTA is encashable. There is no document required for LTA claims.
From India
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From India
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hi, iam working in a distributor company,right now i want to claim a convenyance from my company,please send guide me how to write.
From India, Bangalore
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From India, Bangalore
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Income tax Rules.xls
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