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Leave Travel Allowance LTA

vinu prasannan (Functional Consultant) (28 Points)

28 January 2010

An individual is eligible for LTA of 7000 per annum

For the block of 4 calendar years 2006 - 2009 he claims an LTA of 7000 * 4 = 28000

He avails LTA leave in every year and claims 7000 as LTA

What will be the total exemption he can avail for 4 year .

Is it 14000 or 28000 ?

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4 Replies

Amir (Learner) (4016 Points)
Replied 28 January 2010

Dear Vinu,

LTA exemption is available in respect of 2 JOURNIES in a block of 4 year...

If employee is getting Rs. 7,000 per year & he has actually performed all the journies(or at least 2 out of 4) then maximum exemption that he can claim is that of Rs. 14,000 subject to the provisions of the Act.

Any amount of LTA for which emplyee has not performed any journey is completely taxable.

Neha (Article) (118 Points)
Replied 28 January 2010

Dear Amir & Vinu...

Wat I know is that LTA is actually a non monetary perquisite & its provided to us only if we actually perform our journey.... As Vinu is asking dats a fixed allowance...So Wont it be fully taxable???

Amir (Learner) (4016 Points)
Replied 28 January 2010

Dear Neha,

If employer provides the ticket, etc then it will be a non monetary perk.

But It's not that is cannot be a monetary perks if employer reimburses the expenses then also employee can claim exemption...

And what u are saying regarding allowance u r rite I mentioned the same thing above that if employee has not performed any journey then it will be completely taxable.

CA. Jyoti Baid (CA) (290 Points)
Replied 14 February 2010

Hello

Is there any limit upto which Leave travel assisstance can be exempted.

if an employee has performed a journey in the block of 2010-2013 and the value of tickets amounting to Rs. 18000 is reimbursed by the employer as Leave Travel Assistance, then the whole amount is exempted u/s. 10(5). Balance amount , if any, paid as Leave travel allowance shoul be fully taxable or is it also exempt to certain limit