Leave Travel Concession (LTC)/Leave Travel assistance (LTA)
received from employer to proceed on leave to any place on India for himself
and his family is exempted.
Carry forward of LTC In next block:if assessee has not availed LTC
exemption in Last block of four years (single or both) than he can carry
forward single(one) exemption in first year of next four year block and
can perform journey in first year of the next four year block.(single journey
of the old block period can be carry forward and exemption can be availed in
first year of next block of four year) .It is also clarified here that two
journey actually belongs to next /new block of four years have no impact of
carry forward of the old Journey performed in new block period of four years.
Amount Exempted.
A) Journey performed by Air
amount exempted:Economy Air fair of National carrier by the shortest route or
the amount spent which ever is less.
B) Journey performed by Rail
Amount exempted: A.C. first class rail fare by shortest route.or amount spent
which ever is less.
C) Place of origin and destination place of journey connected by rail but
journey performed by other mode of transport.
Amount exempted :A.C. first class rail fare by shortest route.or amount spent
which ever is less.
D) Place of origin& destination not connected by rail(partly/fully) but
connected by other recognised Public transport system.
Amount exempted:First class or deluxe class fare by shortest route or amount
spent which ever is less.
E) Place of origin& destination not connected by rail(partly/fully) and
not connected by other recognised Public transport system also.
Amount exempted:AC first class rail fare by shortest route (as the journey had
been performerd by rail) or the amount actually spent ,which ever is less.
Exemption On actual Expenses Only:The amount of exemption is Limited to
actual expenses only .Means allowed only if actual journey is performed.
Exemption Of Fare Only:Exemption is allowed only for fare Only as
explained above .Other expenses like Local conveyance charge ,taxi
charges,lodging ,boarding charges is not exempted.
Exemption is allowed only for Two children if born after October 1,1998: This restriction does not apply to multiple birth after birth of
first child and birth before October 1,1998.
On the basic of above answer to your quires is that a employee can perform
jouncy in first year of employment as far as Income Tax act is concerned ,no
bar on it .Moreover if he satisfy above condition of block period than he can
claim exemption on amount actual spent and allowed as stated above which ever
is less.
Secondly as DDO(drawing and disbursing Officer) /employer we should collect
enough evidence /reasonable evidence to establish that the journey has actually
been performed and amount offered for exemption has actually been spent by the
employee.Mere certificate ,received from the employee that he has spent so much
amount on LTC is not enough to allow exemption u/s 10(5) while calculating
salary income for TDS(tax deducted at source) u/s 192.So we should collect
Ticket photocopy where ever practicable or Ticket Number or agent bill etc as a
proof that journey has actually performed to avoid complication at later stage.
Participate In Discussion
Carry forward of LTC In next block:if assessee has not availed LTC exemption in Last block of four years (single or both) than he can carry forward single(one) exemption in first year of next four year block and can perform journey in first year of the next four year block.(single journey of the old block period can be carry forward and exemption can be availed in first year of next block of four year) .It is also clarified here that two journey actually belongs to next /new block of four years have no impact of carry forward of the old Journey performed in new block period of four years.
Amount Exempted.
A) Journey performed by Air
amount exempted:Economy Air fair of National carrier by the shortest route or the amount spent which ever is less.
B) Journey performed by Rail
Amount exempted: A.C. first class rail fare by shortest route.or amount spent which ever is less.
C) Place of origin and destination place of journey connected by rail but journey performed by other mode of transport.
Amount exempted :A.C. first class rail fare by shortest route.or amount spent which ever is less.
D) Place of origin& destination not connected by rail(partly/fully) but connected by other recognised Public transport system.
Amount exempted:First class or deluxe class fare by shortest route or amount spent which ever is less.
E) Place of origin& destination not connected by rail(partly/fully) and not connected by other recognised Public transport system also.
Amount exempted:AC first class rail fare by shortest route (as the journey had been performerd by rail) or the amount actually spent ,which ever is less.
Exemption On actual Expenses Only:The amount of exemption is Limited to actual expenses only .Means allowed only if actual journey is performed.
Exemption Of Fare Only:Exemption is allowed only for fare Only as explained above .Other expenses like Local conveyance charge ,taxi charges,lodging ,boarding charges is not exempted.
Exemption is allowed only for Two children if born after October 1,1998: This restriction does not apply to multiple birth after birth of first child and birth before October 1,1998.
On the basic of above answer to your quires is that a employee can perform jouncy in first year of employment as far as Income Tax act is concerned ,no bar on it .Moreover if he satisfy above condition of block period than he can claim exemption on amount actual spent and allowed as stated above which ever is less.
Secondly as DDO(drawing and disbursing Officer) /employer we should collect enough evidence /reasonable evidence to establish that the journey has actually been performed and amount offered for exemption has actually been spent by the employee.Mere certificate ,received from the employee that he has spent so much amount on LTC is not enough to allow exemption u/s 10(5) while calculating salary income for TDS(tax deducted at source) u/s 192.So we should collect Ticket photocopy where ever practicable or Ticket Number or agent bill etc as a proof that journey has actually performed to avoid complication at later stage.
