hello,
My company given LTA as a fixed part of salary like my salary is 50000 p.m including 4167/- as LTA, in my opinion such fixed sum paid by way of leave travel allowace would not be exempt under section 10(5) even after submission of Travel proof [as per Dr. Reddy Lab. Ltd v/s ITO] , but according to my senior such judgement are changed now. and we can claim such LTA.
is he Right????????????
PLZ provide me documentry support so that i satisfied him.
There is no need for any judgments on this, any allownace given to employee monthly with out any relation to actual expenditure is always taxed as allownce only, if you really intend to use the benifit of section 10(5) ask your company to pay the same as reimbursment of expenses you do on your actual travel along with meeting other conditions specified in 10(5).
LTA as fixed part of monthly salary actually becomes conveyence allownace only even though you call it by what ever name you want to. only ecxpenditure reimburssed or incurred directly by emplyer at the time of your travel can be said as LTC. only LTC is covered LEAVE TRAVEL CONCESSION and not LEAVE TRAVLE ALLOWANCE.
I agre with nimit mehta comments.
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