Whether it is necessary to pay convey. Rs.800 by cash ?

There is no need to pay by cash even cheque payment, transfer to employee account is sufficient.

LTA is exempted 2 times between a block of 4 financial year. the payment should debited in LTA a/c in company books. Usually IInd A/c fair, hotel accommodation, boarding expenses are allowed.

For bifurcation of gross there is lot methods based on their IT ceiling

Dear friend , What I understand that LTA is exempted for train/Air fare only . Pl . confirm whether hotel accomodation and boarding expenses are allowed as exemption . If yes , under which section of IT Act ? Regards

Anita Bhadra

it is not necessary to pay conv. allow in cash or cheque. as far as deduction is concerned, deduction shall be allowed on the basis of pay slip wherein conv. allowance wud be specifically mentioned.

Leave travel allowance is fully taxable.

however leave travel concession or leave travel assistance for the person and his family  is exempt u/s 10(5) of IT Act, 1961.Some of the relevant terms are:

1. Amount exempt under this section shall in no case exceed the amount of expenses actually incurred for the purpose of such travel subject to the following:

Where such travel concession or assistance is not availed of by the individual during any such block of four calendar years, an amount in respect of the value of the travel concession or assistance, if any, first availed of by the individual during first calendar year of the immediately succeeding block of four calendar years shall be eligible for exemption.