Regarding LTA tax calculation

This query is : Resolved

Rajnish (Querist)
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06 January 2010 Dear All,

Please take a note that,
LTA taxable Twice in the block of four
calendar years.
The government defines these blocks.
Presently the block is 2006-2009.

Please see my queries as below,

- Employee not claim LTA in four block
calendar years then LTA taxable for all
years or not?

- If employee eligibility of LTA Rs.
36,000/- PA but he is claim LTA only
30,000/- then remaining amount of Rs.
6,000/- taxable or not?

Please guide me.

Regards
Rajnish

CMA. Dinesh S Adhikari, ACMA

CMA. Dinesh S Adhikari, ACMA (Expert)
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06 January 2010 LTA is only exempt only if actural journey is performed(Section 10(5)) upto actual expenses incurred, Means if actual journey is not performed then whole amount of LTA will be taxable.

Therefore, answers of your query:
1)If employee not claimed LTA then whole amount will be taxable, however you can carry forward one exemption to next Block of year and exemption is available only if you perform actual journey in the very first year of next block, apart from this broght forward exemption, other TWO exemption of that block will be available to you, means total 3 exemption can be claim on performance of actual journey.

2)Yes, Rs. 6,000 will be taxable.

NOTE: Under LTA, only traveling expenses are exempt Which incurred from City to City, but not from home to Station or Station to Hotel.
Please go through section 10(5) of Income Tax Rules,1961.

Regards!!!
Dinesh S. Adhikari

Rajnish

Rajnish (Querist)
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06 January 2010 Dear Dinesh S. Adhikari,

Thanks for your prompt reply.

I have one doubt
Proof of expense require for LTA claim?

Regards
Rajnish