Tax Exemption for LTA (Leave Travel Allowance) - PowerPoint PPT Presentation

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Tax Exemption for LTA (Leave Travel Allowance)

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LTA Exemption - To claim this deduction you have to preserve the journey tickets as a proof. Even if you and your spouse undertake more than one journey, you two may claim this deduction with your respective employer for two journeys each in a 4 year block. This ways you can maximize your deduction and reduce tax liability. – PowerPoint PPT presentation

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Title: Tax Exemption for LTA (Leave Travel Allowance)


1
LTA Exemption
2
LTA Exemption
  • Can I get tax exemptions for travel expense?
  •  
  • Yes, you do get an exemption from tax on the
    amount that you spend on journeys.
  • Leave travel allowance is an allowance given to
    an employee to meet the expenses of journeys.
  • LTA exemption can be claimed only for two
    journeys, in a block of 4 years and is limited to
    the amount actually spent on journeys.

3
LTA Exemption
  • To claim this deduction you have to preserve the
    journey tickets as a proof.
  • Even if you and your spouse undertake more than
    one journey, you two may claim this deduction
    with your respective employer for two journeys
    each in a 4 year block.
  • This ways you can maximize your deduction and
    reduce tax liability.

4
LTA Exemption
  • Example
  • Kunal and his wife Swati travel to Kullu Manali
    on a vacation in the month of May 2015 spending
    Rs.15,000 on flight journeys and then again to
    Kerala in October 2015, spending Rs.20,000 on
    flight journeys.
  • LTA received by Kunal for the year is Rs.20,000
    and by Swati is Rs.10,000.
  • The deduction will be limited to the amount of
    LTA received or amount spent on journeys
    whichever is less.

5
LTA Exemption
  • Continued..
  • Hence if Kunal claims LTA deduction for Kerala
    journey then he will get an exemption of
    Rs.20,000 since he spends Rs.20,000 on his
    journey.
  • Swati, his wife on the other hand will get an
    exemption of Rs.10,000 only for the journey made
    to Kullu Manali since her LTA received is
    Rs.10,000 even if the amount spent is Rs.15,000.

6
LTA Exemption
  • Continued..
  • There is a condition in the IT Act that the
    amount allowed as exemption will be for the
    shortest route between the two destinations.
  • Also now that Kunal and Swati have availed of an
    exemption in 2015 they can claim exemption only
    once each in the block of 2015 to 2019. 

7
LTA Exemption
  • Thank You..!!
  • For more info https//www.hrblock.in/
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