Lta - travel by air india

Tax queries 4170 views 6 replies

Is it true that travel by national carrier i.e. Air India has been made mandatory for claiming non taxable LTA from 2012? There is a mention of circular dated 5-October 2012.

Can someone please clarify and also help with the logic behind this?

Replies (6)

Yes, the words used in section 10(5) and Rule 2B governing LTA exemption are "national carrier". It is strange that why lawmakers do not change the provisions. If an employee travels by Indigo, will he not be entitled to exemption ?

Also you see, the block period consisiting of calendar years should be changed to FYs to avoid all sorts of calculations.

Regards,

My contention is the circular reads

Under Exemption Limit - Air economy fare of the national carrier (Air India) by shortest route to the place of destination

 

However it no where states that the travel itself has to be by national carrier? Any different thoughts??

Yes, Mr./ Ms DH or tpj1w (whoever you are). Your observation is correct. If an employee flies in any other company like Indigo or otherwise, for LTA exemption calculation the fare charged by Air India will be compared with that of other airlines and the lowest will be allowed as exemption.

Thanks for your observation.

Regards,

Mr./ Ms DH or tpj1w

Another question cropped up in my mind. If an employee flies to a place where there is no Air India flight, then how to compare the air fare actually expended on non national carrier flight and avail LTA exemption.

Regards,

I don't think this discussion is upto mark

i don't think national carrier means Air India

 

it is like public transport. so all airlines are included.

and if there is no airline then you can took the train, bus or any other public transport whichever is available.

Not sure what you mean by the discussion is not upto the mark. Pls explain/justify?

AIr India is mentioned in the circular the wording are as I stated earlier

National carrier (Air India)

So how can you say it does not mean Air India?

 


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