Is LTA exemption availble if journey is performed
1. by hiring a car?
2. by waterways?
Please clarify.
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LTA exemption
Replies (2)
LTA can only be claimed on tickets or rented private vehicles,
| Income Tax Rule Regarding LTA |
| As per the Rules, Income Tax benefit on LTA can be claimed only twice during the block of 4 years. (current Block is 2006-2009) |
| For this purpose : |
| >> you should be on leave. |
| >> you should travel (For Income Tax benefit). |
| ** During such travel you may have your family with you. Family for this purpose includes spouse, children as well as dependent parents, brothers and sisters. |
| ** The LTA amount will be exempt to the extent of expenses incurred. |
| ** Tax benefit onLTA Can be claimed only if the journey performed by the Individual. He/she may accompany his/her family members but it can not be claimed on the journey performed only by the family members |
| ** The exemption will be available to a maximum of two children of an individual. |
| These points need to be noted: |
| • Where the journey is performed by air, an amount not exceeding the economy air fare of the national carrier by the shortest route to the destination |
| • Where place of origin of journey and destination are connected by rail and the journey is performed by a transport other than that, an amount not exceeding the air conditioned first class rail fare by the shortest route to the place of destination |
| Where the place of origin and destination are not connected by rail, the amount eligible for exemption is :- a) where a recognised public transport system exists >> an amount not exceeding the first class or deluxe class fare by the shortest route to the place of destination, and b) where no recognised public transport system exists >> an amount equivalent to the air conditioned first class rail fare for the distance of the journey by the shortest route, as if the journey had been by rail. |
| Proof of Journey |
| In order to claim the exemption, the individual must produce original proofs for expenses i.e. the tickets or bills. The tax benefit is available for actual fare only - hotel, food, sight-seeing, local conveyance etc are not included. |
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