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LTA exemption for block year 2022-26

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G. Parameshwar Rao

Accounts officer

56 Points Posted on 15 April 2022

Dear Experts,

As we are in the LTA Block year 2022-26, my employer has taxed my LTA this year that is FY-2021-22 and I have paid the tax for the LTA, but I have a proof for traveling for FY-2021-22 as I have traveled with my family this year.

My query is that for current year FY-2022-23 my employer is allowing me to take tax exemption on LTA. But I have opted for New Tax Regime this year where my LTA is fully taxable. Can I avail tax exemption on LTA by keeping the traveling proof for the FY-2021-22 as per CBDT I can take tax exemption for any 2 block years.

Please suggest me for the above query!

Thanks,
Parameshwar Rao

Replies (2)

Quick Summary

This discussion clarifies LTA tax exemption for the 2022-26 block year, particularly for those who have opted for the New Tax Regime. While LTA is generally taxable under the New Regime, the user seeks to use travel proof from FY 2021-22 for exemption in FY 2022-23. The advice suggests that if the Old Tax Regime was chosen for FY 2021-22, LTA benefits can still be claimed, and any tax paid to the employer will be refunded after filing the IT return for that year.

CA Puja Sharma

Chartered Accountant

3528 Points Posted on 15 April 2022

Since you have opted for a new tax regime, you cannot take benefit of LTA in your current ITR for FY 2022-23

If you have opted for an Old tax regime in FY 2021-22, you can benefit from LTA even if your employer has not provided while deducting the taxes. The extra tax is by the employer and will be refunded by the dept. After the IT return is filed for FY 2021-22.