From now on, Employee will not have to submit proofs as evidence, to their employers for getting LTA (leave travel allowance) reimbursement.
Supreme court of India gave ruling that employers, while reimbursing LTA claims of their employees, are under no statutory obligation to collect evidence and provide them to tax authorities.
As per Income tax rules of India, if transport bills for LTA are not provided, the amount will be taxed. E.g. If an employee has LTA allowance as Rs 50,000 in his CTC(cost to company), and he provides proofs of Rs 40,000 (boarding pass, air tickets, taxi vouchers) then income tax will be deducted for rest of the Rs 10,000. Does not matter whats the amount of LTA in an employee’s package, income tax laws only permits domestic air tickets only for LTA claim.
This court order came after a hearing of case between Larsen & Toubro and income tax department of India. Income tax department had argued that employer has to collect proofs from employee for LTA. Rejecting this, the supreme court in its order said: “The beneficiary of exemption under Section 10(5) (of the Income Tax Act) is an individual employee. There is no circular of Central Board of Direct Taxes (CBDT) requiring the employer under Section 192 to collect and examine the supporting evidence to the declaration to be submitted by an employee(s).”
Here is the link to court appeal
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Sir,
I have taken 15 days leave in June 11 for my marriage and went to kashmir on honeymoon with makemytrip holiday package, it is hard for me to segregate expd on air fare. How can i claim the same as LTA. also i was in AXIS till Sep and now in IDBI. How can i claim LTA ,Pls guide
@Sachin
Travel done in Jul 2011 should be claimed only with employer with which you were employed with at that time.
Current employer cannot accept claim for July 2011, if you joined them after Sept 2011.
Secondly, in case it was a total package with airfare, accommodation etc, you can show full bills to employer but max allowed exemption would be actual fare on national carrier (AirIndia). You can check flight expenses on AirIndia website and claim same.
Dear mr. Pankaj ,
please tell me, how many taxes is applicable on sale of packaged/canned software,
or sale of software in cd/pendrive, and what rate is applicable for f.y. 2011-12,
ex. i m going to sell a software in cd to our client of validity of one year and the software cost is 15000/- rs. now please tell me which tax i will charge on that service tax or vat or exise, what ? please tell me .
@Amit
This post is about leave travel allowance and its related queries.
We have knowledge only of income tax computation for a individual and don’t have information about corporate/service/VAT etc taxes.
If I
1. Travel from Bangalore->Varanasi,
Stay in Varanasi for two days,
2. Travel from Varanasi->Delhi,
then stay in Delhi for 5 days, then
3. Travel from Delhi -> Bangalore.
Which all tickets can be claimed under LTA.
1, 2 & 3 OR 1 & 2 OR any other?
Thanks in advance,
Srinivas