Leave Travel Concession

Leave Travel Concession is a non-taxable perquisite available for Salaried Class u/s. 10 (5) of the Income Tax Act. An employee with his dependent family members can avail of this facility to travel anywhere within India/Native Place. He can claim the actual amount spent on travel expenses such as air / train / bus tickets or by a vehicle taken on rent. No other expenses are allowed.

The dependent family includes spouse, children as well as dependent parents and siblings. The LTC exemption is limited to 2 children born on or after 01.10.1998 and this restriction is not applicable to children born prior to this date.

The tax benefit of exemption under LTC can be claimed only for 2 journeys performed in a block of pre-defined block of 4 calendar years.

Conditions applicable :
• Travel by Air : Economy Class Air Fare by the shortest route of the actual amount spent.

• Travel by Rail : A/C 1st class fare by the shortest route or actual amount spent, whichever is lower.

• If the place of destination is connected by Rail : A/C 1st class rail fare by the shortest route or the actual amount spent for the journey performed by road, whichever is lower.

• If the place of destination is not connected by Rail : Where:
(a) Recognized Public Transport exists: First Class or Deluxe Class fare by the shortest route or the actual amount spent whichever is lower.
(b) No recognized public transport exists : Air-Conditioned first class rail fare by the shortest route or the actual amount spent, whichever is lower.

The Present block started from January 2010 and will last till December 2013.

The claim amount can be either be billed amount or an amount set by the employer whichever is lower.

To claim the LTC exemption duly filled from along with copies of original tickets and travel bills are to be submitted to the employer. One can also claim exemption at the time of filing returns and claim refund.

1 comments:

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