Financial Daily from THE HINDU group of publications
Sunday, Apr 02, 2006
Financial Daily from THE HINDU group of publications Sunday, Apr 02, 2006 |
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Investment World
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Income Tax Columns - Tax Talk Travel conditions T. Banusekar
I work in a bank and recently encashed my LTA. Will the LTA be exempt irrespective of whether I travel or not? S. P. Gupta The value of any travel concession or assistance received by an employee from his employer or former employer for himself and his family in connection with his proceeding on leave to any place in India is exempt from tax subject to certain conditions. The amount exempt under this provision can in no case exceed the amount actually spent by the employee. The exemption is available in respect of two journeys performed in a block of four calendar years commencing from calendar year 1986. Where an individual does not avail such travel concession or assistance during any block of four calendar years, the value of travel concession or assistance first availed of during the first calendar year in the immediately succeeding block of four calendar years shall be eligible for exemption. This exemption shall be in addition to that which will be available in respect of two journeys for the succeeding block. This exemption is subject to limits depending on the mode of conveyance and is available only to the extent spent. Children shall not include more than two. If the children were born before October 1,1998, the limit shall not apply. This exemption is available only if the expenditure is incurred on travel in connection with proceeding on leave to any place in India. This would apparently mean that if no expenditure is incurred, the exemption under this Section cannot be claimed.
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