Please let me know what should be the treatment for following example.:- I am eligible for LTA of Rs.5,000/- P.A. but not avail the same in first year. In second year I will avail Rs.10,000/- for LTA for 2 years. Again same in third year i used Rs.10,000/- for 3rd & 4th year & not avail in the 4th year like 1st year then what will be the tax effect for all the years. Assume that i provide tickets for full amount i.e. Rs.10,000/- in 2nd & 3rd year.
You should be able to claim the whole amount as exempt in the respective years.
LTA is exempt u/s.10 (5) in respect of 2 journeys performed in a block of four (4) calendar years commencing from 1986. In your case, if journeys performed in block of 2006-2009(i.e.1st January, 2006 to 31st December, 2009), then it is exempt u/s.10 (5).
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