LEAVE TRAVEL ASSISTANCE (LTA) U/S 10(5) Rule 2B

LTA benefit can be claim if below conditions are fulfilled :

(a) An individual can avail the benefit of LTA offered by his employer, twice in a block of four years.
(b) The present block of four years applicable for A.Y.2008-09 is calendar years 2006-2009.
(c) LTA may be provided by the employer to the employee and his family:

• In connection with his proceeding on leave to any place in India, while in service.
• Proceeding to any place in India after retirement or termination from service.

When Taxable :

• LTA encashed without performing journey is fully taxable
• Expenses reimbursed other than the fare like boarding or lodging is fully taxable.
• Amount received from employer in excess of the cost of traveling on the shortest route.
  Family of an Individual means:
• Spouse and children of the individual, and
• Parents, brothers and sisters of the individual or any of them, wholly or mainly dependent on the individual.

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