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LTA vs LTC

Tax queries 12176 views 6 replies

Can someone please help me to clarify what is the difference between Leave Travel Assisstance and Leave Travel Concession?

Which one qualifes for tax exemption?

Is there any maximum amount of LTA/LTC which is not chergeable to tax (like medical reimbursemetn where upto Rs 15,000 is not chargeable to tax)?

Replies (6)

REIMBUSEMENT UPTO 15000 EXEMPTION, IS APPLICABLE  TO MEDICAL NOT FOR LTA

FOR LTA IS TAXABLE INTHE HANDS OF EMPLOYEE AS PERQUISITE

TAXABLE PERQUISITE=AMOUNT RECEIVED FROM EMPLOYEE-SHORTEST DISTANCE OF TRAVEL FAIR(ECONOMY CLASS, I ST CLASS AC FAIR BASED ON THE TRAVEL)

BUT NOT ON THE EXACT(DEFINED) AMOUNT

Mr Sujit

LTA is leave travel allowance & LTC leave travel concession . LTA is fully taxable & LTC is allowed as per rules defined in Income Tax Act ( As 2 travel allowed in a block of 4 years).

And in LTC there is no limit defined only travel is allowed in India.............

Dear Sunil

i can help you in identifyin the issue in future.

whenever the issue of Allowance comes, its first taxable because its fixed sum which employuee gets but then you have to check the provisions for the exemption if any given in the act for reducing the amount.

same is the case here as its LTA i.e allowance its taxable.

hope you are  now clear

i support Mr. Sorabh

Leave travel assistant and Leave travel concession are same .

"LTA" is generally used for Leave Travel Allowance which is fullt taxable and

Leave travel assistant or Leave travel concession are exempted up to extend as mentioned in section 10(5) 

Can someone explain in brief about the leave travel concession?


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