WHAT IS LTA ALLOWANCE
LTA or Leave Travel Allowance exemption limit, eligibility, restrictions, documents you need to submit: LTA latest rules here
Leave Travel Allowance (LTA), which is component of your salary, helps cover travel expenses incurred during your vacation. While it covers travel expenses, claiming LTA requires understanding specific rules. Eligibility depends on employer policies and salary structure. Who is eligible to claim LTA? What are the documents that you need to submit to claim LTA? When you can't claim LTA? LTA latest rules explained.
Central govt employees, private employees can't claim LTA if they don't follow these rules; LTA eligibility, other latest updates
LTA for central govt employees: Employers offer Leave Travel Allowance (LTA) to offset travel expenses during leave. It covers airfare, train tickets, or public transport, but reimbursement is capped by employer or tax limits. Confusions arise, especially with air travel. Here's a breakdown: Can you claim LTA with a confirmed flight ticket? Does the booking platform matter? Is family included? What documents are required for flight-based LTA claims?
Govt should allow salaried employees to choose tax regime for TDS on salary again for FY2024-25
Income tax regime for TDS on salary for FY 2024-25: Many employees have already informed their companies about their choice of tax regime for deducting taxes from their salary in April 2024. However, the government has revised the income tax slabs in the July 2024 Budget. There is a need to allow salaried employees, especially those who have opted for the old tax regime, to choose their tax regime for TDS on salary again.
What is the difference between tax exemption and tax deduction?
If you are confused by personal finance terms, jargon and calculations, here’s a new series to simplify and deconstruct these for you. In the ninth part of this series, ET Wealth explains the difference between tax exemption and deduction.
More tax savings from NPS in Budget 2024? Expect employer's share to rise to 12%, additional Rs 50,000 NPS deduction in new tax regime
NPS changes in Budget 2024: Currently, the deduction in respect of the employer’s contribution (capped at 10%) to NPS is allowed under both the old tax regime and the new tax regime. The government may consider at increasing this limit to 12% (aligned with the exemption of employer’s PF contribution up to 12%). Another proposal is to introduce the additional deduction of Rs 50,000 under the new tax regime. Will Budget 2024 make NPS and new tax regime more attractive for investors? Read on
How to claim LTA: Eligibility, LTA rules, documents you need to submit, how much amount you can claim and more
Leave Travel Allowance or LTA, a component in your salary, helps offset travel expenses incurred during your vacation. The benefit extends to family – covering travel costs for your spouse and dependent children, and family members. To claim LTA, you need to submit documented proof of travel costs to your employer within the stipulated deadlines. Who can claim LTA? What are the documents that you need to submit? What are the conditions you need to keep in mind while claiming LTA? All questions answered.
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HRA tax exemption: HRA fraud with illegal usage of PANs detected by tax dept; how to avail House Rent Allowance, proofs
HRA tax fraud: The investigation by the tax department began when authorities stumbled upon purported rent receipts totaling approximately Rs 1 crore under an individual's PAN. However, upon questioning, the individual disavowed any knowledge of these transactions. Subsequent inquiry revealed that the individual had not actually received the rent attributed to them.
LTA exemption: Submit tax-saving proofs to employer by March 31 deadline as claiming LTA in ITR is a hassle
LTA, usually a component of your salary, covers the expenses of your travel during vacation. The cost incurred for family members who travel with an employees is also allowed as exemption. To claim LTA, the employee typically needs to submit documentary evidence of the incurred travel expenditure to the employers within specific deadlines.
What is the right salary structure to save income tax? Five flexi benefits can help in big income tax savings
One thing which most of the salaried employees often ignore is having a salary structure that rewards you with maximum tax saving based on your spending preferences. A new salary hike or revision is an opportunity for you to ensure that it is structured in a way that helps you in minimising your income tax outgo. We tell you how you can ensure that your salary is tax efficient.
Salaried getting income tax notices for deductions of FY21-22 ITR: Watchouts for current ITR
Salaried individuals have come under income tax department's scanner for making fake deductions claims in the income tax returns filed last year i.e., for FY 2021-22 (AY 2022-23). Hence if you are filing income tax return now, then you must not make certain mistakes to avoid getting income tax notices.
10 salary components that can help employees reduce tax burden
Your salary structure is of utmost importance; as you would always seek to maximise your take-home salary. Do keep in mind that these components can help you save taxes only if you opt for old tax regime in the current financial year.
How to calculate income tax liability under new tax regime for FY 2022-23 (AY 2023-24)
As individuals are required to choose between the old and new tax regimes, it is important to know how to calculate the income tax liability for the financial year 2022-23 under the new tax regime. Read on to know how you can calculate the income tax liability under the new tax regime for the ongoing financial year.
Here’s what millennials need to know about smart tax savings plans and products
Are you a young salaried professional, whose investment and tax-saving strategy is the result of a mix of impulse and instinct, without adequate time and thought invested in much-needed planning for his taxes? While tracking the latest developments in the Indian tax landscape, we demystify the overarching differences between the old and the new tax regime to help you choose the best option.
Don't forget to claim your LTA tax exemption this year: Here is how
LTA exemption is available for 2 journeys in a block of 4 yrs. While the current block is 2022-25, one can undertake three journeys in the current block provided only one journey was undertaken in the last block (2018-2021) and no tax exemption has been availed under the LTC Cash Voucher scheme for FY 2020-21.
HRA exemption rules: Were there any changes announced in house rent allowance in Budget 2023?
An individual can claim tax exemption under section 10(13A) of the Income-tax Act, 1961. Usually, HRA is part of the CTC of an employee.
Maximum period of leave for govt employees, leave encashment, childcare leave: Govt answers 19 FAQs
The government has published Frequently Asked Questions (FAQs) on leave policies and entitlements. This replaces the CCS (Leave) Rules of 1972 FAQs, which were previously published on the DOPT website on March 25, 2013, and April 28, 2015, respectively.
What are the tax exemption limits for allowances, reimbursements paid to employees? Find out
Here are the tax-exemption limits for various allowances that are recived by employees. Do note that these allowances are partially or fully taxable in the hands of an employee under the old tax regime for current financial year.
How to claim LTA from your employer
Before availing of the tax benefit on LTA, there are, however, certain other important conditions attached to it. Read on to know them. Do keep in mind that tax exemption on LTA can be claimed in the old tax regime only for FY 2021-22.
Budget 2022 disappoints, no income tax relief to the middle class: Here's what FM Sitharaman gave instead
Many people were disappointed by this budget since there was nothing in it that would aid the average person who is drowning in debt, paying a high premium, and worried about their children's education.
Forgot to submit tax-saving proofs to your employer? You can still claim the benefit for these
At times a taxpayer may forget to show the entire amount of the qualifying amount for deductions to the employer. There's still a way out.
Should you opt for the LTC cash voucher scheme? Here's how much tax you will save
Here is a look at how much you stand to gain by opting for the LTC cash voucher. This story will tell you about the rules of availing the LTC benefit and compare it to the conditions specified under the new voucher. Further, we will tell you if you should indeed opt for this scheme.
View: Three ways to get the economy purring again in Covid times
The 300 million-odd members of the middle classes feel by and large ignored, and the time has come to aggressively incentivise them to spend by offering a stimulus package. Tax reduction and tax benefits for expenditure on products such as cars, housing, white goods and travel should be introduced. Small steps, like the recently announced LTA benefits, are not likely to give the desired impetus.
New tax regime doesn't allow LTC cash voucher tax benefit: Experts
As per existing income tax law, an employee can claim tax-exempt payment of LTA/LTC (if provided by employer) equal to the fare of domestic travel subject to limits and conditions. To claim this tax exemption, an employee is normally required to provide proof of his travel.
Should you spend Rs 3 lakh to get Rs 30,000 LTA income tax sop?
Government is offering you a window where you can avoid paying Rs 30,000 without going on a , provided you spend Rs 3 lakh to purchase a car, laptop, TV set, fridge, smartphones or a combination of these items which attract over 12% GST.
Has working from home increased your tax liability? This is what you should do to save on tax
As work-from-home becomes the new normal across the country, salaried taxpayers are seeing their tax shoot up. Many of the allowances in the pay package, including the commonly used reimbursement of fuel or conveyance expenses, have become taxable due to the travel restrictions imposed by Covid.
From Budget 2020, common man wants income tax cut and incentives to spend: Survey
A recent survey by Local Circles, a community social media platform, found that most people want the government to not just provide a tax cut but also announce measures that will provide an incentive to spend.
How you can use LTA to go on a tax-free vacation
Under LTA coverage one is allowed to claim exemption for self, spouse, two children, dependent parents and dependent siblings.
Basic exemption limit might be raised to Rs 3,00,000 in Budget 2017: Kuldip Kumar, PwC India
Kuldip Kumar, partner and leader, personal tax, PwC India speaks about what individual tax payers can expect from Budget 2017.
How to make the most of your Leave Travel Allowance
Holidays can mean heavy expenses. However, if you are a salaried individual, you can use the same vacation to save a decent amount on tax outgo.
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