Question: How Many Days Leave For LTA Claim?

What is LTA percentage?


The rate of tax you pay on pension savings above your lifetime allowance depends on how the money is paid to you – the rate is: 55% if you get it as a lump sum.

25% if you get it any other way, for example pension payments or cash withdrawals..

What is CTC salary?

Gross Salary: Subtract gratuity and the employee provident fund (EPF) from Cost to Company (CTC), the amount that you get is your Gross Salary. It is the amount that you get before deduction of income taxes and other deduction such as bonus, overtime pay, holiday pay etc.

What is the rule for LTA claim?

LTA can only be claimed on domestic travel expenses. You can not claim LTA on the expenses incurred during the international trip (if any) of the employee. It should be noted that the employee can not claim LTA in every financial year. LTA can be claimed only for two journeys in a block of 4 years.

Can we claim LTA every year?

LTA, also known as leave travel concession (LTC), cannot be claimed every year and you may not be able to claim exemption on the full amount. It is most likely that LTA is a part of your salary package but it will not be treated as tax-free income every year under section 10(5) of The Income Tax Act, 1961.

What happens if I don’t claim LTA?

If an employee has not availed of LTA for one or two permitted journeys in a particular block of 4 years then he is entitled to carry one journey over to the next block. In such a situation, the exemption will be available for 3 journeys in the next block.

Can LTA be claimed for travel by car?

Only individuals whose employers offer leave travel allowance (LTA) can claim it. … The exemption must be claimed by submitting proof of your travel to your employer, you cannot claim it directly in your income tax return. What is covered under LTA? LTA covers journeys made by any mode–air, rail or road.

Can I claim LTA at the time of filing returns?

Gupta says, “Income tax exemptions in respect of leave travel allowance (LTA) and medical reimbursements cannot be claimed while filing the return. … “Since LTA can be claimed via your employer, you can always request your employer to not deduct tax and permit you to claim it in the next year.

Is taxi bill allowed for LTA?

You can claim taxi fares as part of LTA only if there’s no bus service available to reach the destination. You will need to check the distance travelled by taxi and can only claim the first class rail fare applicable for that distance.

How many times can I claim LTA?

twiceLTA tax exemption can be claimed twice (two journeys taken) in a block of four calendar years. That means, the current block of four years is 2014 to 2017. Remember, you can claim LTA reimbursement every year, but not the tax exemption.

How is LTA calculated?

For example, if LTA granted by employer is Rs 30,000 and actual eligible travel cost incurred by employee is Rs 20,000, exemption is available only to the extent of Rs 20,000 and balance Rs 10,000 would be included in taxable salary income.

Is LTA paid monthly or yearly?

Employers pay leave travel allowance or LTA as part of the CTC salary just like HRA and medical allowance. The total LTA for each employee is calculated on a yearly basis. However, employees may even receive it as a part of their monthly salary.

How is LTA calculated in salary slip?

LTA exemption Illustration – If the LTA given by the employer is INR 35,000 and actual eligible cost of travel incurred by the employee is INR 25,000, then the exemption will be granted on only INR 25,000 and balance INR 10,000 would be included in taxable salary income.

How much is LTA of basic salary?

Note: The salary structures is updated effective FY 2018-2019.ComponentRecommendationHRA50% of Basic + DA if metro and 40% if non-metroConveyanceRs. 1,600 a monthMedicalRs. 1250 a monthLTANo real benchmark, can even be used as a plug, but if not can set as 10% of Basic9 more rows•Apr 28, 2018

Is hotel stay included in LTA?

LTA covers only the cost of travel for the trip. Hotel accommodation, food, etc. cannot be claimed for exemption.

Can LTA be claimed in 2 consecutive years?

Apart from the employee, LTA covers such expenses of the spouse, children as well as dependent parents and siblings. … An employee cannot claim this tax benefit every year. It can be claimed only twice in a pre-defined block of four calendar years. The claim can be in alternate years or even consecutive years.

What is the max limit for LTA?

Hence, you can use LTA for your advantage and declare it as the maximum value after consuming the maximum amount of other expenses and then reducing personal allowance….Salary Calculator India.ComponentMonth/ AnnualMax. Tax ExemptionLTA1k/12kNo Maximum limitPersonal Allowance11k/131kFULLY TaxableTotal23k/276k4 more rows

What happens if you exceed your LTA?

If you go over this lifetime allowance, you’ll generally pay a tax charge on the excess when you take a lump sum or income from your pension pot, transfer overseas, or reach age 75 with unused pension benefits. The excess can be paid as a lump sum, subject to a 55% tax charge.