Chinmay Sahu (Finance Analyst) (51 Points)
21 June 2010Hi all. I want to know about taxation of LTA. I have claimed LTA in 2006 and 2007 for two years from my previous employer.I have not claimed LTA in 2008 and 2009 from my current employer. But in 2010 I have claimed LTA for 2008, 2009 and 2010. Does my LTA pertaining to 2008 and 2009 taxable in 2010?
Amir
(Learner)
(4016 Points)
Replied 21 June 2010
Dear Sir,
LTA Exemption can be claimed for two journies in a block of 4 years - current Block is Jan' 2010-December '2013
Exemption related to one journey can be carried forward to nest block.
Since U had availed both the exemption of the previous block i:e 2006-2009 hence there is no exemption, which can be carried forward to next block.i:e 2010-2013
From 2010-2013, u can again claim exemption in respect of 2 journies (actually performed) - It has nothing to do with the year to which it pertains, only thing is in a Block of 4 years u cannot claim for more than 2 journies(except in case of carry forward)
Further, the amount of exemption shall be determinded by the rules of income tax. Any amount received in excess of that shall be taxable irrespective of the year to which it pertains.
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