Can we accept private / Travels Car Rent Bill for LTA
Rachit
(Analyst)
(913 Points)
Replied 12 May 2010
Dear Deepak
The I. Tax Act does not prohibit private / Travels Car mode of transport for claiming LTA.
Only remember that the maximum amount allowable as exemption u/s.10(5) would be limited to :
1) amount not exceeding the air conditioned 1st class rail fare by the shortest route to the place of destination.
So if the private transport bill is higher than the above , then it will restricted to (1) above
CAclubindia
