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Gross total income includes lta

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Querist : Anonymous

Querist : Anonymous (Querist)

10 April 2012
pls explain wht LTA is considered in gross total income since it is exempted as per income tax rules..so why we include it in gross total income

Murtaza I Bhagat

Murtaza I Bhagat (Expert)

10 April 2012 It depends on the choice made by employee. If the employee wishes to have LTA every month as a taxable component then you can take LTA as part of your monthly salary. If you wish your company should accumulate LTA and release when you produce bills of your travel then the company will release to you once a year.When you get it reimbursed then it is non taxable upto the bills submitted by you.

Querist : Anonymous

Querist : Anonymous (Querist)

10 April 2012 Thanku for the reply..now it is clear that it depends totally on person wish to have LTA every month..again one doubt is that if i am not taking LTA and then if i produce documents ie bills for reimbursement so company will allow it or not..can you tell the exact rule for it

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