This discussion clarifies the rules surrounding Leave Travel Allowance (LTA) exemption for employees. It addresses whether employees must incur actual travel expenses to claim the LTA allowance and how TDS (Tax Deducted at Source) applies to this benefit. The aim is to provide guidance on the correct procedure for both employers and employees regarding LTA.
I am giving Leave Travel Allowance to my staff amounting to Rs. 25,000 per month as a part of his salary. I want to know what is the rule for claiming TDS exemption from LTA allowance. Is it necessary for the employee to incur travel expenses to claim LTA exemption.