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TDS Applicable for Travelling Allowances?

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1238 Points Posted on 23 December 2019
Dear Friends,

Now, we are paying LTA (Local Travelling Allowances) Rs. 100 per day (monthly 2500) for all our staffs along with Salaryand showing travel reimbursement in the pay slip.

Can we add this LTA in the Salary and deduct TDS u/s 192B?

mohanraj_vkj @ yahoo.co.in
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On 23 December 2019 at 18:18 Report
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C.A FINAL STUDENT AND QUALIFIED C.M.A
563 Points Posted on 23 December 2019

L.T.A exempted U/s Sec 10(5) does not form part of Salary.Hence you need not consider that portion for the purpose of T.D.S.But you must provide such details in Part B of Form 16 and arrive the taxable Salary.

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On 23 December 2019 at 20:19
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17264 Points Posted on 24 December 2019
Section 10(5) of the Income-Tax Act, 1961, read with Rule 2B (Commonly known as LTA Rules), provides for the exemption and outlines the conditions subject to which LTA is exempt.

Such exemption is limited to the extent of actual travel costs incurred by the employee. 
101 Reply
On 24 December 2019 at 00:14
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1238 Points Posted on 24 December 2019
Dear Friends, Thanks for your kind assistance. Could you please advise me about the Annual Bonus/Ex-Gratia and Sales Incentives.
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On 24 December 2019 at 08:27
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17264 Points Posted on 24 December 2019
@ Mohanraj
please raise another post for another query topic.
101 Reply
On 24 December 2019 at 08:44
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Team Lead
7558 Points Posted on 25 December 2019
Yes for bonus exgratia TDS needs to be made as they form part of the salary
30 Reply
On 25 December 2019 at 10:33


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