Shreyaa Kapoor Instagram – Leave Travel Allowance (LTA) is a tax-free allowance paid to the employee by the employer. 🙌🏼
This amount can differ from one employer to the next. One can avail of the exemption for only two travels within a block of four years.🌱
The current block is 2022-2025. 🙏🏼
The rules related to the exemptions of LTA have been clearly mentioned under Section 10(5) of the Income Tax Act, 1961. ☀️
While this is a very good tax saving tool, there are a few pointers you should account for:
– Check if it is a part of your salary structure.
– To claim the exemption, an actual journey is necessary. Only domestic travel will be considered for LTA exemptions.
– The travel exemption is available for the employee alone or with the family. Employee’s spouse, children, and wholly or mainly dependent parents, brother, and sister of the employee are allowed.
– The exemption is allowed for ticket fares of a national airline’s economy class.
– If the destination is connected by train, the exemption is allowed for AC first-class tickets.
– If the destination is not connected by air or rail, an amount equivalent to first-class, deluxe, or AC first-class fare, whichever is lower, can be claimed for exemption under LTA.
– The LTA deductions will be considered only for the shortest route to the destination and back.
So if you took a flight this year for a vacation, claim your LTA before it’s too late! ⏰
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[personal finance, tax tips, tax hacks, taxation, tax season, personal finance hacks, travel hacks] | Posted on 23/Mar/2024 20:00:10
