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Lta taxability on taxi fare

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Querist : Anonymous

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Querist : Anonymous (Querist)
18 January 2017 Dear Team, If Employee travel from Mumbai to chennai by train & when he travels in Chennai he travels by Taxi. When he claims the LTA the employer also reimburse the taxi fare also in the name of LTA. Is it allowed?? Kindly clarify this under Income tax act. I am really confused about the taxibility of the same. Thanking you in advance.

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18 January 2017 as per income tax act sec 10(5) only fare from station to station is allowed. So train fair from Mumbai to Chennai is allowed. but taxi fare in Chennai is not allowed.
employer can reimburse any amount even hotel charges. but for exemption in income tax these are not allowed.

in practical many employer exempt this in return as normally income tax doesn't check salary person. but if it is checked then this amount will be disallowed.


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