How is my LTA Taxed?

by Manshu on February 11, 2007

in Tax

Leave Travel Assistance (LTA) has got a tax treatment which is quite different from all the other type of allowances and perquisites that you get. And that’s the primary reason it is the one that gets people confused more often than not.
The following points need to be kept in mind while taking the LTA or producing bills for it to get  LTA Exemption:

Can We Claim LTA Every Year?

One of the most common questions about LTA is whether it can be claimed every year or not? The answer is Yes – you can claim LTA every year, but you will not be able to claim LTA exemption ever year.

Other Points About Tax On LTA

  1. If you do not wish to claim LTA in one particular year you can have your employer carry forward your LTA for the next year.
  2. For getting LTA tax exempt you will have to produce bills, but you can’t get your LTA exempt every year.
  3. You can get your LTA exempt twice in a block of four years. Right now the block that is relevant is 2006-2009. This block is decided by the Government so does not have a bearing on when you start your job and also these blocks are calendar years and not financial years.
  4. The bills can be air, rail or even a private rental company however the exemption is only for domestic travel so an international ticket won’t do.
  5. The bills have to be for a journey that has been undertaken when you are on leave and should be for you and your family that is spouse, children and dependant parents, brothers and sisters. Its obvious that your family can’t claim the exemption if you have not accompanied them.
  6. If you and your wife both get LTA – both of you can’t claim exemption for the same travel but you can avail exemption independently for different travels. So effectively between the two of you, you can claim exemptions four times in four years.
  7. If for some reason you fail to claim LTA exemption in the bucket of four years – you still have the option to claim exemption in the first year of the next block.
  8. Only travel bills can be used for LTA exemption, so a hotel bill can’t be produced for claiming LTA exemption even though you might have stayed in the hotel during your leave.
  9. The maximum LTA for the purposes of LTA tax exemption is Rs.20,000 so normally most organizations design the salary structure in such a manner that they don’t give the employees more than Rs. 20000 as LTA.
  10. In terms of proof for air travel – although there is no fixed rule as such, it might be a good idea to preserve the boarding pass along with the ticket to make sure there are no problems in claiming LTA exemption later on.
  11. LTA can only be claimed for the shortest distance between two places. So if you are planning to travel from Goa to Mumbai then you will be allowed exemption on tickets from Goa to Mumbai and back. You will not be allowed to produce tickets that are via some other place like Mumbai to Hyderabad and then from Hyderabad to Goa and so forth.
  12. LTA can only be claimed on tickets or rented private vehicles, you cannot show petrol or diesel vehicles for your own vehicles and then claim exemption on it.

The above are just some of the points that need to be kept in mind while discussing LTA exemptions. Because tax rules keep changing it is best to discuss with a professional before taking any decision.


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{ 98 comments… read them below or add one }

Vishal Narwal February 12, 2007 at 9:25 PM

Good article.

Can you please clarify the folowing points:

1) LTA tax exemption limit:
I have been told by a professional organization that there is no top sealing/exempton limit for LTA. Any amount of actual bills can be billed for a continuous journey.

2)Journey Route:
Please elaborate on second last point of short journey. Suppose if i am travelling from Delhi to Manali, there can be two possible routes:
a) Delhi-chandhigarh-Kullu-Manali
b) Delhi-chandhigarh-Shimla-Kullu-Manali

So if i choose either of the above, can i claim exemption?

Waiting to see your reply.

Thanks,
Vishal

Reply

Manshu February 12, 2007 at 11:01 PM

Hi Vishal,

I don’t think that there can be a case when there is no limit at all, In which case you can get your entire salary as LTA, produce a bill and get all of it tax exempt!

However its best to follow the advice of professionals looking at your pay stubs specifically.

Again for the route that you have decided you gotta get in touch with them to see what is the explanation to the act.

Thanks,
Manshu

Reply

Arti March 9, 2007 at 2:55 AM

Hi,
Does one have to provide bills for the entire amount?

-Arti

Reply

Manshu March 9, 2007 at 3:17 AM

Yes Arti one has to produce bills for the entire amount to get exemption.

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skumar October 23, 2008 at 11:20 PM

quote
“The maximum LTA for the purposes of tax exemption is Rs.20000 so normally any most organizations design the salary structure in such a manner that they don�t give the employees more than Rs. 20000 as LTA.”

unquote

pls. clarify the above point, that the amount of Rs. 20,000/-
is the maximum for one year or claiming above Rs.20,000/- is taxable ?

Reply

manshuv October 24, 2008 at 3:33 AM

Claiming above 20,000 is taxable. So till 20k, the normal rules apply (mentioned above), but above that everything is taxable.

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Munmun December 13, 2008 at 10:03 PM

Hi, Thanks for all the information. It is quite helpful. I have one small query though… In case of travel by road— what is the requirement? Like we took a hired car to travel to Dalhousie and back, is that taxable??

Reply

Suresh Sharma January 15, 2009 at 12:01 AM

Sir i want to know that can an employye take LTA for three year in one time and second in above case amount will be taxable or not ?

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Manshu January 15, 2009 at 11:22 AM

I don’t think your employer will allow you to take three future years LTA at one go Suresh. You can check with your HR but I really doubt it.

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bharatpatel January 17, 2009 at 12:54 AM

sir, i have lta examption taken on 2007, that time i have prodused bil amount 14000.00 RS. that time my lta eligible limit was 7500.00 RS.and examption also taken only 7500.00RS. shell i take again lta examption on 2008.

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rahul January 23, 2009 at 7:59 AM

sir,

your information given useful knowledge. i have a situation and hope u could suggest me.

i joined one mnc comany in a month of oct, 2008 and i am going to resign the job and my salary is 26k. from my salary my employer is dedicting 800/- per month. my query is can i claim the lta by producing respective bills from the present employer on or before exit date?

provide me with the best suggestion.

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Navaneeth January 27, 2009 at 3:40 AM

Sir,

Can i claim LTA as taxable without producing bills. If yes then, what will be the tax structure? Will it be added to head salary?

Please suggest.

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manshuv January 27, 2009 at 5:35 AM

Yes Navaneeth, you can claim LTA as taxable without the bills. The amount will get added to the head salary. Based on your bracket, you will be taxed upon it.

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chirag February 4, 2009 at 2:38 AM

Hello Manshuv,
I need to claim LTA exemption this year.
My salary has LTA component of 2500/- per month.
My journey is from Surat – Ooty in following manner:
Surat to Mumbai – Rail
Mumbai to Coimbatore – Air
Coimbatore to Ooty – Bus or Taxi
and vice versa.
So how to claim LTA in this case.
Also is the airline should be AirIndia/India airllines or any carrier is allowed.

Reply

manshuv February 4, 2009 at 4:04 AM

Hi Chirag,

It can be any airline or even a train or bus ticket. As long as your journey has been made in one leave break.
It has to be the shortest distance between two places so that needs to be taken into account.

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Rajeev Arora February 11, 2009 at 6:16 AM

Dear Manshuv,

I need to know that if I produce a LTA bill on 12 Feb 2008, then whether I will be eligible to get LTA that has got accumulated till:
a. March 2008
b. Jan 2009
c. Till date (12 Feb 2009)
d. Any other date that is applicable. (Please state the date in this case)

Further, I had claimed for LTA around August 2008, the employer/company has payed me LTA till March 2008. Please let me know whether I can submit a fresh bill of amount that is equal to LTA that will accumulate from Apr 2008 to Dec 2009. Which duration should I consider for which I’ll surely get the money. For remaining duration, will I get the remaining amount/money on monthly bases, or will I get it after every financial year?

Please help.
Thanks & best regards,
Rajeev Arora

Reply

Nilesh February 11, 2009 at 8:15 AM

I have claimed LTA for thif FY amounts to Rs 41000/- on Taxi bill for journey of 4 persons incl me of my family but i got the exemption of Rs 36000/- only.

Our HRD confirmed that reason for getting lesser exemption is due to calculation of equivalent distance’s least fare by Ist class AC rail fare which amounts to only Rs 36000.

SO IS IT TRUE ? that taxi bills in LTA have calculation based on Ist class ac rail fare for exemption ?

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vamsi December 9, 2009 at 3:04 AM

Hey nilesh,

can you tell me the route which you travelled from-to so that you got 36000 as LTA.

As i came to know from my collegue that my company has given only 17000 as LTA even if he has kept for 42000 claim based on his route calculation. Hence request your route.

Please send the details to my mail id.

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vamsi December 9, 2009 at 3:13 AM

Hey nilesh,

can you tell me the route which you travelled from-to so that you got 36000 as LTA.

As i came to know from my collegue that my company has given only 17000 as LTA even if he has kept for 42000 claim based on his route calculation. Hence request your route.

Please send the details to my mail id.

Regards,
vamsi

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Gaurav Singh February 12, 2009 at 2:14 AM

Any clue on limit on No. of Bills Submitted ?
If i am claiming LTA of 20k, then should it come of only two bills (that is two journey) or even more than 2 would do ?

Reply

kirti February 13, 2009 at 2:27 PM

Hello,

Need urgent help.
I am working in a mnc at hyderabad. Last year 2008 I have claimed LTA (Tax-excemption) Hyderabad to Delhi. This year also I am going to claim LTA (Tax-excemption). But my HR people told me that I can claim LTA but I can produce bill for my home town journey only i.e from hyderabad to surat.

Is it true that LTA can be claim once for outside home town and other for home town journey only ?

Can’t I go two time outside of my home town in a block of 4 year ?

Need urgent response. Please mail me on patelkirtim@gmail.com

Thanks in advance.

Reply

Manshu February 14, 2009 at 12:49 PM

Nilesh,

That limit is correct. You can’t go more than First Class Fare. However, in one case – A bank officer had claimed filed a writ against this appeal as his Air Fare was higher than the Train Fare.

In your case, I don’t think a taxi fare will be allowed to exceed the First Class Fare.

Look at this:
http://www.taxmann.com/DitTaxmann/IncomeTaxActs/2006ITAct/%5B2005%5D142Taxman0064(Ker).htm

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Manshu February 14, 2009 at 1:11 PM

@Gaurav,

The journeys should be within one time period in which you took leave. Also the act mentions the shortest distance between two places.

Reply

Manshu February 14, 2009 at 1:11 PM

@Rajeev,

Sorry, But your’s is a specific question that I don’t know the answer to.

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Manshu February 14, 2009 at 1:13 PM

Kirti,

Rule 2(B) (act which clarifies LTA) doesn’t talk anything about home-town, so I am not sure what your HR is referring to. You can ask them about which section or case – this particular clause is in.

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Manshu February 14, 2009 at 1:18 PM

Gaurav, Chirag –

The bills have to be for the shortest distance between two places.

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Jayesh February 18, 2009 at 6:06 PM

Hello,
For claiming LTA, do we need to boarding passes ? My company is asking for the boarding passes as a verification. Since i have mistakenly not retained the boarding passes, what alternative do i have to claim LTA ?

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manshuv February 18, 2009 at 6:44 PM

Supreme Court has recently passed an order which states that proof of LTA is not needed.

Check with your HR about this new Supreme Court Ruling.

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MAK February 20, 2009 at 4:08 AM

Please tell me if i have travled by innoova car for 4 members of my family. the taxi bill is 24000rs.

last year i got LTA is 10000 rs & this year is 12000 rs could i get exmption on 23000 rs this year if I havent claimed LTA last year.

How much would be the LTA tax exemption it is 24000 rs or 22000rs actuall amount. pls help

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manshuv February 20, 2009 at 8:55 PM

MAK,

You can’t combine the LTA of two years and claim exemption for it.

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Gokul Krishnan March 4, 2009 at 3:50 AM

Dear Sir,

I want to know the exact meaning for round trip for availing LTA for example if i am hiring taxi from bangalore to Chennai & covering some via places then for LTA calculation via places are covered or from source to destination

Reply

Gokul Krishnan March 4, 2009 at 3:58 AM

For availing LTA if husband & spouse are travelled by air in the different dates while back both are travelled by air in the same date in this case spouse onward journey can be considered for LTA calculation so please reply me in this regard.

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Vijay March 9, 2009 at 2:59 AM

Can I claim LTA as taxable without producing bills. If yes then, what will be the tax structure? and how I will calculate..?

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Manshu March 9, 2009 at 7:10 AM

@Gokul – The exact definition is the shortest possible distance between two places, so if you went via some other place, it won’t be covered.

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Manshu March 9, 2009 at 7:12 AM

@Vijay – You can claim LTA as taxable without producing bill. The amount of the LTA will be added to your salary and you will be taxed acc to the bracket you are in.

However, Supreme Court has recently passed an order which states that proof of bill is not required for claiming exemption. I am not sure of the intepretation of this rule but you can surely check with your HR.

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Jagadish April 9, 2009 at 12:58 AM

My company is paying LTA every month. So please let me know whether I am eligible for exemption. If yes then what will be my exemption. I am getting Rs1800 every month as LTA component.

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manshuv April 9, 2009 at 4:02 AM

Yes Jagdish, even if your company is paying you monthly — you are eligible according to the regular norms.

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Nikhil April 27, 2009 at 12:44 AM

Hi Manshu,
I appreciate you for providing such helpful information.

I have not claim LTA for years 2006, 2007, 2008 and going to claim for 2009. I had a travel trip in year 2006 and 2008 as well.

I can claim LTA exemption for the year 2009.

Now if I’ll claim LTA for year 2006, 2007 or 2008, will I get the LTA exemption for any of these years? Or I’ll only get the LTA which will be taxable?

Can you please suggest a optimum way in my case, to claim the LTA along with exemption?

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Anil Kumar May 8, 2009 at 12:07 AM

Hi,
If I have visited From Delhi to Rishkesh by private taxi (rented), can i charged the amount of Hire charges as against claim of LTA for any particular Calender Year.
Awaiting response on urgent basis.

Regards,

Anil Kumar

Reply

manshuv May 8, 2009 at 3:58 AM

Yes Anil, people use taxi bills to charge against LTA all the time.

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Amit January 10, 2010 at 9:53 AM

Hi manshuv,
I want to know two things 1) if i dont go any where in a particular year then how can i get that LTA amt that is been included in my salary structure . 2) is it compulsory to include LTA in Salary structure suppose i dont want to bifer X amt as LTA in my salary structure i want to adjust that particular amt in basic salary structure is it possible
Please revert back soon
Regards,
Amit

Reply

Manshu January 10, 2010 at 10:57 AM

1. You can just ask your HR to pay it at the end of the year.
2. That entirely depends on company policy to the best of my knowledge. Let me also add that I don’t think there is any benefit to be had from taking the allocation from LTA to Basic.

Reply

Akansha May 18, 2009 at 2:54 AM

what is the limit on LTA when road bills are claimed?

how would a private taxi provide road bill?

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manshuv May 18, 2009 at 3:59 AM

Akansha the limit remains the same regardless of what mode you use. Most taxis do provide a bill. Which part of the country were you looking at? Right at the time of calling them up, you can ask them to be ready with a bill and they will.

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vijender rastogi June 11, 2009 at 7:44 AM

Dear Sir,

if a Properitership firm was started on 01.04.08. so, in this case can employee get the Tax Exemption benefit 2008-09 & Dec. 2009 twice on the withdrawn of LTA.
& from 01.01.2010 – 31.12.2014 employee can withdrawn the LTA twice as per thr act block years.

Regards
vijender

Reply

kumar July 27, 2009 at 7:29 AM

What is the maximum amount of lta that can be claimed as exemption from tax in 1 financial year.Say if actually rs 45,000 are spent in 1 single travel, can all be claimed or only rs 20,000 per annum, as mentioned in a few above question/answers..And under what section should thsi be shown while filing IT returns, under section VI A…or in losses[like hsg loan interest is shown]…clarify….or any other section…….

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kumar July 27, 2009 at 7:32 AM

say if actually 2 lakh rupees[or more] are spent in 1 travel, can this much amount be claimed for lta exemption….

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Manshu July 29, 2009 at 4:26 PM

@Kumar, max was 20k, last I checked. So unless the rules have changed it should be 20k.

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Hemraj August 12, 2009 at 11:29 PM

Hi,
I am in HR deptt. Giving exeption to employees this year. I have few questions please answer
1. Upper Limit for LTA claim for one year?
2. Bill are required?

My finance department said there is no upper limit for LTA, should be reasonable and there is no need for bills for claiming LTA. Have a doubt?

Reply

Hardik M October 6, 2009 at 5:16 AM

Dear Manshu,

I read all the people’s questions and your replies, but still have a doubt in one specific area of ‘break journey’.

I am planning to go from Vadodara to Lucknow next month by flight. But, since there is no direct flight, I have to change planes at New Delhi. Hence, my journey would be Vadodara – New Delhi – Lucknow and back in the same way.

If I am landing in Delhi then, I also want to stay there for a day or two, before flying to Lucknow. This could be either while going or on my return journey or both times too. Now, my HR says I can claim enitre amount from Vadodara to Lucknow flight as it is the shortest route in that mode (by flight). But, they say that if I stay in Delhi and then go to Lucknow after a days’ or more gap, they it will not be considered. In that case they suggest me to claim only for Vadodara – Delhi and Delhi – Vadodara flight expenses for LTA.

My question is that what is the logic of that? Is there any rule or sub-clause in LTA that does not permit this thing? Because, I am anyway going to travel to my final destination (Lucknow) in that same leave period; then why can’t I have a gap of day or two days before going to my final destination? The route will still remain the shortest.

Please clarify me urgently on this as I need to urgently plan and book tickets for this Diwali 2009.

Reply

Manshu October 6, 2009 at 5:18 PM

I tried to look up the relevant section but couldn’t find the rule relating to this. I am sorry that I was unable to help you out. Have a happy Diwali, whichever way it turns out though.

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Hardik M October 7, 2009 at 1:09 AM

Oh.. I wish something could’ve been found out. Anyways, thanks for your effort.

My HR too tried to find some alternative to help me out and just told me this morning, that if I don’t make a long stop-over (except for changing flights) while any one journey, they will pay me full amount for that and for the journey with a Delhi stay, they can pay me for partial tickets, like Delhi to Vadodara only. So, for Lucknow to Delhi I will be paying from my pocket. Not a bad deal, atleast major travel cost is covered.

Request you to let me know here or on my email in case you get any updates on this query just for my future use. Thanks again!

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Sundar October 20, 2009 at 4:22 AM

can i claim lta amount before the date journey

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Manshu October 20, 2009 at 4:24 AM

Yes the amount can be claimed.

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Jay Sen November 10, 2009 at 7:09 AM

I need clarification on the process to claim LTA for the following scenario.

My employment base location is Pune.
I travelled from Pune to Mumbai by Car.
Availed flight from Mumbai to Kolkata. Stayed in Kolkata for few days.
Travelled from Kolkata to Puri by Train. Stayed at Puri for few days.
Returned from Puri to Kolkata by train. Stayed in Kolkata for a couple of days.
Returned from Kolkata to Mumbai by flight.
Returned to Pune from Mumbai by Car.

Please let me know the best process that will entitle me to claim the maximum from my travel costs.

With Regards
Jay

Reply

Jay Sen November 28, 2009 at 4:40 AM

I need clarification on the process to claim LTA for the following scenario.

My employment base location is Pune.
I travelled from Pune to Mumbai by Car.
Availed flight from Mumbai to Kolkata. Stayed in Kolkata for few days.
Travelled from Kolkata to Puri by Train. Stayed at Puri for few days.
Returned from Puri to Kolkata by train. Stayed in Kolkata for a couple of days.
Returned from Kolkata to Mumbai by flight.
Returned to Pune from Mumbai by Car.

Please let me know the best process that will entitle me to claim the maximum from my travel costs.

With Regards
Jay

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vamsi December 9, 2009 at 3:21 AM

Hi Manshu,

Can you tell me whether LTA can be claimed only if the source is where your office location is ? or can be from any where in india i.,e., other place which is neither my native nor where my office is situated ? ( as i am looking to claim from my uncle house to the place where i travelled with my family).

Please send the details to my mail id.

Regards,
vamsi

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SAGAR January 28, 2010 at 4:15 AM

please send me the details if you have solved your query regarding place of office to be start point of journey to claim LTA

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Ajay Yadav December 15, 2009 at 12:04 AM

Hi!,

I want to know if I do not take leave for LTA and the same LTA amount is paid to me, so can u advice me that what is the percentage rate charged, as the LTA amount is taxable.

Reply

Vishnu December 16, 2009 at 2:16 AM

How to use LTA from two companies in same financial year?

I would be leaving my current organization by end of Dec ’09. For the period of April ’09 to Dec ’09, I have received LTA for 30,000.

Also, in the new organization, I would get LTA worth 5,000 for the remaining period of this financial year i.e. Jan ’10 to Apr ’10.

Last month, I went on honeymoon vacation where I have spent around 35,000 for Travel. My current company Finance people say that I can submit the documents worth 30,000 max and not more than that.

Please explain whether I can claim LTA for the entire 35,000. Because, if I combine the LTAs of both the companies, it is 39,000. If possible, what is the procedure?

Also, out of the 4 boarding passes, I have 3 with me but missed the last one. Is it legally required to provide the boarding passes, not just the print out of the e-tickets alone?

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Vishvesh January 7, 2010 at 4:48 AM

Hi,
If I claim LTA more than 2 times in 4 years then what is tax deduction ?
Can I claim LTA if not travled with family ?

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ssr February 11, 2010 at 3:45 AM

When you claim LTA by submitting tickets, then you are not taxed for that. Alongwith this can I also claim 25% as incidental expenses under the tax rules. When I was with Reserve bank of India I had this option, but in the corporate this is not being considered. Can you pl clarify and provide me the authority

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NEHA April 13, 2010 at 8:08 PM

WE HAVE TAKEN LTA IN THE MONTH OF OCT 2009 .CAN WE TAKE LTA IMMEDATILY IN NEXT BLOCK THAT IS 2010-2013. WILL WE GET EXEMPTION ON THAT IN THE YEAR 2010 IF WE GO ON LTA?

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SAGAR April 14, 2010 at 9:45 PM

is it mandatory to start the journey from the place of work only and not from home town (both being different) for taking LTA exemption.

Ex. Place of work — gurgaon
Hometown ——-nagpur
then
can i claim LTA exemption for journey for
Nagpur — Chandigarh—–gurgaon.

if not as per what rule????

Please help

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Nataraj July 16, 2010 at 2:20 AM

Dear Money Manager,

My LTA is equal to on month basic salary, and is equal to Rs. 48,000 pa. My company gives LTA as part of monthly salary…ie Rs. 4000 per month and mentioned in Salary slip as LTA ….so how do I claim exemption of LTA once in two years?

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Manshu July 20, 2010 at 3:57 PM

The way your company pays you the LTA has nothing to do with how you get taxed.

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krishna March 23, 2011 at 4:33 AM

pl. reply on above question

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Manshu March 23, 2011 at 3:50 PM

Krishna – It’s not clear to me which question you’re referring to – I don’t see your name in any earlier comment. Can you please copy paste the question in a new comment?

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satyen January 21, 2011 at 4:53 AM

can we claim the package tour taken for the family for LTA..

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Manshu January 21, 2011 at 10:46 AM

Yes Satyen, you can take this for you and your spouse. Children, only if they are dependent on you.

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PRIYA January 27, 2011 at 11:32 PM

can you please explain about LTA briefly?

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Manshu January 28, 2011 at 5:34 AM

LTA stands for Leave Travel Allowance, and is often paid by employers as part of an employee’s salary. It’s often paid out in a lump – sum, so say you might have a LTA of Rs. 25,000 in your salary, and when you request your employer to pay your LTA to you – they pay the entire sum in a particular month’s salary.

It has a tax treatment slightly different from other parts of the salary, and can be exempt also, so that’s why it’s kept as a separate chunk of money by employers instead of having that 25k as part of any allowance or something.

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Rochelle March 31, 2011 at 2:43 AM

Firstly thanks Manshu for your eye opening articles. Just a small qt. on LTA. so if i have accumulated 40000/- as LTA and i claim 21000/- in the 1st yr itself, will the remaining 19000/- be taxed and paid in the monthly salary? Or will that 19000/- accumulate in the LTA account till i claim it the next time/till 4 yrs elapse? thanks in advance.

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Manshu April 3, 2011 at 4:21 PM

How you get LTA money paid depends on how the company has set up its rules. I’d expect them to pay that to you at the end of the year. The rules about taxation are laid by the govt. but how you get paid is primarily based on how it’s defined by the company.

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Rochelle April 8, 2011 at 4:04 AM

Thanks Manshu. Yes you are right. Our company policy is to pay the remainder amount at the end of the financial year. Thanks for your reponse.

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Manshu April 8, 2011 at 10:56 AM

You’re welcome Rochelle – appreciate your coming back and leaving this comment. Doesn’t happen very often.

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Samuel April 14, 2011 at 11:36 PM

Hi,

I had taken Earned Leave from Feb 23rd to Mar 11 2010. (13 days). During that time I made the following travels:

Bangalore to Tuni : Train
Tuni to hyderabad : Flight
Hyd to Coimbatore: Train
Coimbatore to ooty: Car
Ooty to Coimbatore: Car
Coimbatore to Guntur: Train
Guntur to Bangalore: Train

Will I be able to claim the ememption for these travels? Please can you help me with this?

Reply

Manshu April 16, 2011 at 12:58 PM

Samuel – you can claim the travel expenses for the shortest distance between two places. So if you want to claim for this set of journey you will have to see what’s the max you spent on travel between any two points and then claim for it. As far as I know you can’t claim for the whole journey the way you have described.

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Samuel April 18, 2011 at 3:55 AM

Thanks a lot Manshu…

The journey is done between Bangalore and Ooty. But they are not connected by Train. Hence can I claim the train 1A fare for Bangalore to Coimbatore and Car fare for Coimbatore to Ooty?

In that case exemption is something like Train fare (1080*4) + Car fare (1650+1600) = 7570 Rs…

Actual Amounts spent are as below:
Bangalore to Tuni ( Train ) 339
Tuni to hyderabad ( Train ) 1404
Hyd to Coimbatore (Flight) 5100
Coimbatore to ooty ( Car ) 1650

Ooty to Coimbatore ( Car ) 1600
Coimbatore to Guntur ( Train ) 1666
Guntur to Bangalore ( Train ) 1512
Total 13271

Please canyou advise?

Reply

Manshu April 18, 2011 at 6:00 PM

I think you’re better off consulting a CA Samuel because I don’t practice tax, and am not familiar enough to advise in this situation – slightly more involved. I may just end up putting you on the wrong track. Sorry!!!

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Kunal July 28, 2011 at 11:23 AM

Hi, My company does not provide us the LTA as part of Salary, still i want to claim it. can i claim it and how much is the maximum limit for the same.

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Rajib Dey April 20, 2011 at 4:09 AM

I have claimed LTA exmption from Apr’09-March’11 in the month of Apr’11. I had submitted documents of the travel in Nov’10.

Can I not get LTA exemption based on the above documents as FY is changed.

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Manshu April 20, 2011 at 11:22 AM

The current block is calendar year 2010 – 13, and it looks like you have already claimed exemption in that, so based on that I’d imagine that you can’t get another exemption now.

You could check this with a CA because I’m not one and my interpretation of tax may not be accurate.

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Manoj Srivastava September 27, 2011 at 4:23 PM

Hi,
I have travelled in Feb 2011 and missed claiming it within FY10-11. Can the same journey and tickets be used for getting tax expempted LTA in FY11-12. I have submitted this with my employer in June 1011 and is under processing. If my employer pays it, do i need to declare it in my ta retrun of FY10-11? I would request a quick reply from experts .

Thanks

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Manshu September 28, 2011 at 4:27 AM

I’m sorry but I don’t know the answer to this question .

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Andy December 14, 2011 at 2:54 PM

Hi, My company does not provide us the LTA as part of Salary, still i want to claim it. can i claim it ?please help ?

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Manshu December 14, 2011 at 11:25 PM

If they don’t give that to you then you can’t claim it.

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subu December 18, 2011 at 9:59 AM

For LTA claim I missed the boarding pass but I can download the ticket from the airlines site which have all the details as PNR no., cost etc. Is it a valid document for claiming LTA?
Thanks in advance.

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Manshu December 19, 2011 at 1:30 AM

Per SC guideline from a few years ago, you no longer need to furnish travel proof, so you can claim LTA even without the boarding pass.

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subu December 18, 2011 at 12:12 PM

Also please let me know how is IFCI infrastructure bond rated and should I go for it or wait for some other.

Thanks

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Pramod Babu January 25, 2012 at 10:04 PM

Dear Sir,
I am planning to go for a travel from Bangalore to hyderabad,

1) My travel Plan is Bangalore to Vijayawada to Hyderabad to Bangalore.
2) I will be travelling by my Car
3) Can i claim Tax Exemption for the Travel from Bangalore to Hyderabad.

Regards
P.Pramod Babu

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Hema R.Iyengar March 7, 2012 at 4:09 PM

I get LTA Rs .10000/- p.a . I have not claimed since last 4 years. My accumulation not is Rs.40000/- can i make tour expenses of Rs.40000/- and product the bill of Rs.40000/- for claiming tax benefit

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Manshu March 8, 2012 at 5:28 AM

Yes you may claim that.

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Hema R.Iyengar March 9, 2012 at 12:09 PM

Thanks for your reply

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Ankit January 11, 2013 at 12:50 PM

Hi Manshu,
I had travelled with my family from Pune to Puri to Thiruvarur to Pune by road in a rented car.
How do I claim for LTA and will this be a valid case for LTA exemption ?
Eagerly awaiting your comment.

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Avijit July 21, 2014 at 9:24 AM

Hello,
I travelled from Bangalore to Bangkok ( and back ) for my leave. The ticket raised by Indigo had a single PNR number and a total invoice value. However, it was basically two flights – one from bangalore to calcutta and the other from calcutta to bangkok and I was given two seperate boarding passes. But indigo is refusing me to provide a billing breakup for the bangalore to calcutta flight, hence I cannot claim the tax exemption. Please suggest.

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babanna July 24, 2014 at 11:23 AM

sir
LTA amount is it uniform to all states in india or different on state wise?
I work for a company in Bangalore. They have been giving me salary from Kolkatta. My professional tax deducted in Kolkatta. PF in a trust at AP. LTA they give me yearly 6 percent on basic salary. I do not get family package LTA as they say it is not permitted. But ask me to fill up the LTA forms and do not reimburse actual train or airfare from point to point onward and return journey. Please advise what my employer is doing is right? I have been with them for past 12 years and LTA is given in this fasion. your article gave me some insight into this practice. The company i work is group company diversified interest in business. LTA amount is it consolidated payment for block of 4 years or is it every year. please enlighten me. rgds

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prash December 4, 2014 at 11:13 AM

If LTA is unclaimed what percentage of tax will be deduction ?

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