06 January 2010
LTA is only exempt only if actural journey is performed(Section 10(5)) upto actual expenses incurred, Means if actual journey is not performed then whole amount of LTA will be taxable.
Therefore, answers of your query: 1)If employee not claimed LTA then whole amount will be taxable, however you can carry forward one exemption to next Block of year and exemption is available only if you perform actual journey in the very first year of next block, apart from this broght forward exemption, other TWO exemption of that block will be available to you, means total 3 exemption can be claim on performance of actual journey.
2)Yes, Rs. 6,000 will be taxable.
NOTE: Under LTA, only traveling expenses are exempt Which incurred from City to City, but not from home to Station or Station to Hotel. Please go through section 10(5) of Income Tax Rules,1961.
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