An Employee has availed Rs 25,000 as LTA from his company, but hasn't made a travel So the amount is Taxed.
In the next year, he availed Rs 25,000 and performed a travel. He has submitted his bills for 65,000.
His contention is that since previously his LTA has been taxed and not allowed as deduction , he would avail Rs 50,000 in current year.
Is his contention valid?? Can he avail for Rs 50,000.??
Please do suggest:)
As per the provisions for LTA
If you can not claim LTA / LTC exemption for some reason..................
The exemption doesn’t lapse ,it can be carried forward to the next block of 4 years.
The only condition in this case is that the exemption has to be availed in the very first year of this subsequent block.
No.......................only 25000 is allowed as deduction
Yes, He can claim only Rs 25,000.
After my understanding i got that
Carryforward option is only for the number of travels and not the amounts unavailed previously.
Thank u Nisha for spending ur valuable time
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