Can LTA Be Claimed For Travel By Own Car?

Is LTA part of monthly salary?

Employees use this provision to meet their vacation or travel expenses.

Employers pay leave travel allowance or LTA as part of the CTC salary just like HRA and medical allowance.

The total LTA for each employee is calculated on a yearly basis.

However, employees may even receive it as a part of their monthly salary..

How much LTA can be claimed in a year?

SHOULD YOU CLAIM EVERY YEAR? LTA tax exemption can be claimed twice (two journeys taken) in a block of four calendar years. That means, the current block of four years is 2014 to 2017. Remember, you can claim LTA reimbursement every year, but not the tax exemption.

Can I claim LTA While filing returns?

Gupta says, “Income tax exemptions in respect of leave travel allowance (LTA) and medical reimbursements cannot be claimed while filing the return. … “Since LTA can be claimed via your employer, you can always request your employer to not deduct tax and permit you to claim it in the next year.

How much LTC can be claimed?

According to government guidelines, employees will be able to claim a tax deduction equivalent to the LTC allowance up to Rs36,000 per person for a four-member family (Rs144,000 in total), provided the employees spend three times the LTC amount claimed as deduction on buying goods and services.

How is LTA calculated?

For example, if LTA granted by employer is Rs 30,000 and actual eligible travel cost incurred by employee is Rs 20,000, exemption is available only to the extent of Rs 20,000 and balance Rs 10,000 would be included in taxable salary income.

How much is LTA of basic salary?

Note: The salary structures is updated effective FY 2018-2019.ComponentRecommendationHRA50% of Basic + DA if metro and 40% if non-metroConveyanceRs. 1,600 a monthMedicalRs. 1250 a monthLTANo real benchmark, can even be used as a plug, but if not can set as 10% of Basic9 more rows•Apr 28, 2018

What happens if you don’t claim LTA?

If an employee has not availed of LTA for one or two permitted journeys in a particular block of 4 years then he is entitled to carry one journey over to the next block. In such a situation, the exemption will be available for 3 journeys in the next block.

Is LTA taxable if not claimed?

LTA, also known as leave travel concession (LTC), cannot be claimed every year and you may not be able to claim exemption on the full amount. It is most likely that LTA is a part of your salary package but it will not be treated as tax-free income every year under section 10(5) of The Income Tax Act, 1961.

Is LTA deducted from salary?

In case you don’t travel at all or you don’t submit the travel bills, the LTA amount gets paid as part of the employee’s salary after tax deduction as per the applicable income slab.

What is the rule for LTA claim?

LTA can only be claimed on domestic travel expenses. You can not claim LTA on the expenses incurred during the international trip (if any) of the employee. It should be noted that the employee can not claim LTA in every financial year. LTA can be claimed only for two journeys in a block of 4 years.

Can I claim hotel stay in LTA?

LTA covers only the cost of travel for the trip. Hotel accommodation, food, etc. cannot be claimed for exemption.

What is the maximum limit of LTA?

Salary Calculator IndiaComponentMonthly/ AnnualMax. Tax ExemptionConveyance Allowance800/9.6kMax 800 per month utilizedMedical Allowance1.25k/15kMax 1.25k per month utilizedFood Coupons3k/36kMax 3k per month utilizedLTA11k/131kNo Maximum limit. FULL BoB limit utilized3 more rows

What is LTA percentage?

Rates. The rate of tax you pay on pension savings above your lifetime allowance depends on how the money is paid to you – the rate is: 55% if you get it as a lump sum. 25% if you get it any other way, for example pension payments or cash withdrawals.

Is taxi bill allowed for LTA?

You can claim taxi fares as part of LTA only if there’s no bus service available to reach the destination. You will need to check the distance travelled by taxi and can only claim the first class rail fare applicable for that distance.

What bills can be submitted for LTA?

LTA can be claimed for travel fare or tickets within India only, expenses incurred for accommodation, or any other fee will not be eligible for exemption. An employee can produce his/her travel-related bills for the journey through air, train, bus or any other mode of transport and save on taxable income.

How many days leave required for LTA claim?

LTA exemption is available for 2 journeys in a block of 4 years. The block applicable for the current period is calendar years 2018-21. Leave Travel Allowance (LTA) forms a part of an employee’s total CTC (cost-to-company).