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Querist : Anonymous

Querist : Anonymous (Querist)

08 March 2014 An employee receives LTA of Rs. 10,000/- p.a. during the calender block from 2010-2013.

First he was travelled in 2011 and claimed Rs. 20,000/- by receiving 2 years LTA amount.

Secondly he had travelled in 2013 and claimed again Rs. 20,000/- of 2 years. So he claimed total LTA of Rs. 40,000/- during 2011 & 2013 travelling.

So is this calculation is correct.

Request your early reply.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

08 March 2014 your calculation correct. Ensure that only cost of ticket fare only allowable under LTA exemption

Querist : Anonymous

Querist : Anonymous (Querist)

10 March 2014 Thanks for responding sir,

Sir, my query is that whether all 4 years sum of Rs. 40,000/- is tax free if it is taken in 2 years leaves instead of 4 years leaves separately.

As per Income tax act , 2 out of 4 journeys LTA expenses are tax free and rest 2 are taxable. But suppose an employee only takes 2 leaves in 4 years but claiming all 4 years LTA as exempt.

Please clarify it.

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