LTA

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Jayesh Jagetiya (Querist)
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23 February 2009 Dear friends,
to one of our employee we have given LTA like below:-
in 2006 - Rs. 25000/-
in 2007 - Rs. 25000/-
in 2008 - Rs. 25000/-
in 2009 - Rs. 25000/-

he will be eligible for exemption of Rs. 50000/- or Rs. 100000/-?

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)
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23 February 2009 Neither 50000/- nor 100000/-.
He just will be able to claim exemption from amount received as follows:
if he travelled by air- amount equal to economy class fare of a national carrier.
By rail- amt = first class fare
by any other transport utility - amt of shortest possible route.
So say, if he travelled by air and amount comes to 22500/-, 25000-22500(exemption)=2500/-(amt.taxable).
If the amt spent is more than amt will be restricted to amt.recd.

Jayesh Jagetiya

Jayesh Jagetiya (Querist)
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23 February 2009 Actually the employee has spent Rs. 150000/- on one tour & Rs. 125000/- on another tour. then what?

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)
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23 February 2009 Then 25000/- for both the tours.

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