Leave travel allowance- urgent!!

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pankaj

pankaj (Querist)

23 November 2007 Please clarify whether Taxi travel bills can be accepted for LTA Tax exemptioN

CA. Vineet Grover

CA. Vineet Grover (Expert)

23 November 2007 If you call for leave travel allowance then its an allowance which is part of your salary. Rs.800 per month is the exemption limit.

As regards re-imbursement of expenses, the said expenses are exempt from tax if the same is availed exclusively for official purpose

K V Subba Rao

K V Subba Rao (Expert)

23 November 2007 Yes, subject to limits prescribed as tabled at Para 15.7.1 of 30th edition of Singhania's Direct Taxes Ready Reckoner.

These limits refer to fares charged by rail and public transport

pankaj

pankaj (Querist)

23 November 2007 I believe the tax exemption under Section 10(5) is available subject to satisfying the conditions in the Section and to the limits specified therein. The limits in the Section are only the maximum limits and bear a reference to a public transport, rail transport or air economy fare by the national carrier. This does not mean that the travel will have to be performed only by these modes. The travel can be performed by any mode but the exemption will be restricted to the limits in the Section. Am i correct?

K V Subba Rao

K V Subba Rao (Expert)

23 November 2007 I agree with Mr Pankaj's Observations posted at 10.34.34 am on 11/23/07

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