Leave travel concession is for travel within india tds to be deduced from ltc if foreign visit is involved

Last updated: 08 November 2022

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Quick Summary

The Supreme Court has ruled that Leave Travel Concession (LTC) benefits are strictly for travel within India. Employees undertaking journeys that include foreign travel, or do not use the shortest route between designated Indian points, are not eligible for the tax exemption under Section 10(5). Consequently, employers are obligated to deduct Tax Deducted at Source (TDS) on any such LTC payments made.

Court :
Supreme Court of India

Brief :
LTC will be exempt only in cases where travel begins and ends into India and with shortest roust as may be prescribed. In case of foreign travel, no exemption of LTC will be available u/s 10(5) of the IT Act,1961 and employer is required to deduct TDS on LTC paid according to the provisions of Section 192 of the Act, 1961.

Citation :
W.P.(C)NO.55/2019

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FCS Deepak Pratap Singh

Associate Vice President - Secretarial & Compliance (SBI General Insurance Co. Ltd.)

Dear Friends, MyselfFCSDeepak P. Singh ( B.Sc.. LLB, FCS. FIII, CIAFP, CRMP, ID) , A Fellow Member of ICSI, Law Graduate ,Fellow Member of Insurance Institute of India, Certified Independent Director ,Certified Insurance Anti Fraud Professional , Certified Risk Governance Professional ( ICSI-III) and cleared Limited I ... Read more

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