LTA Claim

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Raghavendra (Querist)
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19 March 2009 An Employee who travelled in Nov 08 and Jan 09, wishes to claim his LTA for both these travels as he did not claim any LTA earlier. Can he claim both these in the FY 2008-09 since both these travels occur in the same F.Y., but, in different calender years, if the LTA Allowance suffice the total of two trips?

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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19 March 2009 Block-period Exemption is available in respect of 2 journeys performed in a block of 4 calendar years commencing from 1st January 1986.
for the A.Y. 2010-11(P.Y. 08-09
), the relevant block is Jan 2006 to Dec 2009 and Jan 2010 to Dec .2013.
so he can not claim exemption of both the journey in FY 08-09(AY 09-10).

however he can use Carry-forward facility

as the carry forward facility, where concession is not availed during the preceding block (whether on one occasion or both), then any one journey performed in the first calendar year of the immediately succeeding block will be additionally exempted (i.e. not counted in two journey limit).
so if the person has made only one journey during the previous block(Jan 2006 to Dec 2009), he can use carry forward facility and claim exemption. he can claim exemption for journey made in 2008 under carry forward facility and for journey made on 2009 under normal LTC .

regards................!

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