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Leave travel allowance: 10 things know
1. When can we claim LTA?
Tax exemption on LTA can only be claimed if you have applied for leave from your company for travel and if you actual make a journey.
2. What does LTA cover?
LTA covers only the cost of travel for the trip. Hotel accommodation, food, etc. cannot be claimed for exemption.
3. Whom does it cover?
LTA exemption covers you and your family. A family, under LTA, includes spouse, parents, siblings, and children. The cost of other relatives cannot be claimed.
4. How many times can we claim LTA?
LTA can be claimed twice in a block. The blocks are decided by government. They are 2010-2013, 2014-2017 and so on.
5. What type of transport does LTA cover?
LTA can be claimed for travel through rail, air or any other public transport. However, you should keep in handy the proof of travel as it may be needed by your employer.
6. Is International travel permitted?
No, LTA covers only domestic travel.
7. What is the maximum limit on LTA exemption?
LTA exemption is limited to the amount of LTA paid to the employee as part of the CTC. One cannot claim exemption beyond the actual LTA amount being provided.
8. Can a husband-wife duo claim LTA?
Yes, both the spouses can claim the exemption on LTA from their employers. However, both of them cannot claim for the same journey.
9. Can we carry forward LTA?
Yes. In case you have only claimed LTA for one journey in a block, you can make another journey in the first year of the next block and claim it. In such a case, 3 journeys can be claimed for the block in total.
10. Can LTA be claimed if the actual claiming person has not travelled?
No, LTA cannot be claimed for the family if you as a claiming person are not included in the travel.
Keywords: LTA,Tax exemption , trip. Hotel accommodation, food, family,spouse, parents, siblings,children,public transport, employer, CTC
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