LTC REIMBURSEMENT FOR ABROAD VISIT

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 January 2010 If an employee and his dependent family members visits abroad on LTC or LTA is that total expenditure is taxable?

CA Chitresh Gupta

CA Chitresh Gupta (Expert)
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13 January 2010 Yes, the exemption u/s 10(5) of LTA is available only in case of domestic travel.

Moreover, the FBT has been abolished with effect from 01-04-2009. Hence, there is also no question of employer paying FBT on this.

This is fully taxable under the Head Salaries.