LTA is a monetary benefit that you get on the expenses you incur when you travel. It is not a fringe benefit. And you can claim a leave travel concession (LTC) on the amount. You can claim LTC provided you fulfil two criteria: apply for leave and actually travel during the leave period. However, the travel is applicable anywhere in India and not abroad. You can receive LTA as either a reimbursement or as an allowance. In case you receive LTA as reimbursement, it is not taxable. LTA can be claimed only for the amount that you are eligible for example say in a year, you receive Rs 12,000 as LTA, but spend Rs 75,000 on travel. You can claim exemption only for Rs 12,000. In case you fail to avail of your LTA, there is a carryover option. Suppose in the block of four years, you never claimed any LTA, you can do so in the calendar year immediately following that block. In such cases, the exemption so availed of will not be counted for purposes of regulating the future exemptions allowable for the succeeding block of four years. If both spouses get LTA benefits, they can claim exemption on LTA from their employers and the benefit for four journeys in one block. They do not have to take the precaution of not traveling twice during the same year. Moreover, they can take the same family members or different ones as long as they stick to the definition of the members for this purpose. However, you and your wife cannot claim LTA twice for the same journey. If both of you take a holiday together and you claim LTA, she cannot.
Further Reading
- How often can you claim LTA?
- Are LTA, HRA & Medical under FBT net?
- Hang on to ticket stubs
- LTA Exemption Only As Per I-T Rules
- Proof not required to claim LTA
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LAUGHTER IS THE BEST MEDICINE
A doctor, a lawyer, a little boy and a priest were out for a Sunday afternoon flight on a small private plane. Suddenly, the plane developed engine trouble. In spite of the best efforts of the pilot, the plane started to go down. Finally, the pilot grabbed a parachute, yelled to the passengers that they had better jump, and then he bailed out.
Unfortunately, there were only three parachutes remaining. The doctor grabbed one and said "I'm a doctor, I save lives, so I must live," and jumped out.
The lawyer then said, "I'm a lawyer and lawyers are the smartest people in the world. I deserve to live." He also grabbed a parachute and jumped.
The priest looked at the little boy and said, "My son, I've lived a long and full life. You are young and have your whole life ahead of you. Take the last parachute and live in peace."
The little boy handed the parachute back to the priest and said, "Not to worry, Father. One of the "smartest men in the world" just went skydiving with my back pack."
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