Tax Implications of LTC under Different Tax Regimes
This query is : Resolved
25 June 2024
LTC is not taxable under the old tax regime but is taxable under the new tax regime.
An employee adopted the old tax regime in the financial year 2022-23 and took a ₹50,000 advance from his department and availed the LTC. The employee also submitted a claim for the remaining ₹20,000 of LTC to his department in the same financial year.
However, his department processed and paid the remaining ₹20,000 in the next financial year 2023-24. In 2023-24, the employee switched to the new tax regime.
Therefore, will income tax be levied on the ₹70,000 received by the employee?
An employee adopted the old tax regime in the financial year 2022-23 and took a ₹50,000 advance from his department and availed the LTC. The employee also submitted a claim for the remaining ₹20,000 of LTC to his department in the same financial year.
However, his department processed and paid the remaining ₹20,000 in the next financial year 2023-24. In 2023-24, the employee switched to the new tax regime.
Therefore, will income tax be levied on the ₹70,000 received by the employee?
26 June 2024
If the amount was already claimed earlier, it cannot be assessed again.
29 August 2024
Good Luck.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Off Market debit and credit transaction
- Showing Gift from relative in ITR for this year
- ITR selection for salaries and capital gain less than L
- Share accounting-->fifo - capital gain - period as per fifo?
- Short Term Capital gain on shares bought and sold after 2018 onwards
- Soyabean hsn code and gst rate
- ITR filing- non tax audit cases- Asstt.Year 2026-2027
- Treatment of Pension ?annuity returns on PMVY
- Last year TDS Claim
- RNOR Status but Investments more than Income
- Gst invoice numbering and delivery challan numbering
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Small dealers gst returns filing
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
