Dear All,
My Company Provide LTA to every Employee which is included in salary package.
My Quary is what is the tax exemtion limit on the same?
For example, my compnay provide Rs.1 Lac per year as LTA to one of our Employee.
Will this entire amount be considered as tax exemted?
Thank you so much in advance.
U/s 10(5) read with rule 2B LTA/LTC is exempt for Air/Railway fare value only. No claim can be claimed for accomodation/fooding/lodging/boarding. Also, local conveyance expenses cannot be claimed. LTA/LTC is exempt twice in a block of four years i.e from 2014 to 2017. Also, to claim LTA travel should be in India.
Kothari Jain Patil & Chartered Accountants
Pune
CA Inter
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