Tds on lta

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Lalit Sharma (Querist)

26 December 2013 can any one solve my q.... 1. whether employee can claim exemptions from tds by submitting just declaration of travelling bill to claim exemption of lta....... 2. I knew landmark judgement of L N T.. which say employers dont go for actual proof....only declaration is sufficient for exemptions. 3. But here my point is if emloyee genuinely travel then he should submit actual bills.....along with declaration. ....... 4. NOWDAYS many salaried people had taken advantage of this....by showing hire amt as LTA declaration. ...not not submitting bills............. .4. can anyone suggest whether employers should collect actual bill or not........or only declaration is sufficient. .....

Nikhil Kaushik

Nikhil Kaushik (Expert)

26 December 2013 1. No more. These days employers ask for actual proof before March end and accordingly adjust the tax liability on the basis of actual proofs.

2. It is advisable that to the extent possible collect actual evidence for the amount spent on not onlt LTA but insurance, House rent, interest deductions etc etc.

3. Declaration is not sufficient.

@VaibhavJ

@VaibhavJ (Expert)

27 December 2013 Hi

Agree with expert, since employer is DDO in this case & he is required to ensure before granting any exemption to employee.

So employer must collect proofs and after that only exemption should be given.

As a company you can form a policy like no proofs to be submitted upto Rs. 10K expenses incurred & above which proofs can be made compulsory.

Thanks//VaibhavJ

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