Dear Professional Colleagues,
Recently due to change in the rule for payment of LTA (Leave Travel Assistance) to the non-executive employees in the organisation a fixed amount is paid to the the employees as per their respective grade within a block of four years alongwith one hometown LTC. Which means one LTC(Home Town) and one LTA (fixed amount) within a block of four years.
Regarding the consideration of this LTA amount as taxable income, prima facie it has to be considered as taxable income by it's own nature of payment as it is not fortified by the employees by producing the journey proof etc.
Now, in view of the above perspective, please inform me about the following
1) consideration of this amount (LTA) as taxable income
2) is there any notification/circular related to this item by IT Authority, if so the reference of the same.
3) if otherwise, then on what ground and on the basis of which documents from the employee this should not be considered as taxable income
Please provide your valued opinion for the same
With Regards
CMA Swarup K Chakraborty
CAclubindia
