Hi Sir,
I am looking to claim LTA against products which i bought from Oct-20 To Mar-21, I shared below points with Tax team in my organisation
#1. Full exemption benefit is available, provided that you spend three times the amount of LTA received. So, if your monthly LTA is ₹5K, i.e. ₹60K per annum, one would need to spend ₹180K between October 2020 and March 2021 to claim the benefit.
#2. In a block of 4 years 2018-2021, If one has not claimed LTA then he is eligible to claim 240K by spending 720K on products with GST 12%+.
#3. If the amount spent is less than 3 times, the benefit will be provided on a prorated basis.
But I got reply from Our Tax team saying we will consider only one years LTA amount i.e 60,000.
I feel this is very unfair with employees as per Govt Guidelines and Rules. Can you please help me on how should I convince our Tax team, Any Article from Govt which clearly discard Our Tax team Rule (Accepting LTA only for one Year)
Request you to please help me in this matter.
CAclubindia
