Lta claim related
Dhyan Singh
(Querist) 31 October 2012
This query is : Resolved
Hi,
I am working as a salaried professional in an IT company. I get my LTA as a non-taxable monthly component. I applied for LTA claim with my company for to-and-fro return air fare for myself and my spouse and child. My wife and child travelled one week before my travel and while coming back we all travelled together. Company is denying me claim for air fare for journey done by my wife and child citing reason that my dependents have to travel with me. Company is also siting opinion of website taxgyan.in (url: http://taxgyan.in/leave-travel-allowance-lta-exemption-and-income-tax-benefit/#comments).
There is no explicit condition (for mandatory travel of my dependents with me)mentioned in any of the company's policies. Please advise.
Regards,
Mukesh
V R SHROFF
(Expert) 01 November 2012
If u travel with ur family, all r eligible. Otherwise u alone can claim for u.
Guest
(Expert) 01 November 2012
Your company has been mislead by the half or partial gyan of "TaxGyan".
I have seen the FAQ made available by the so called "TaxGyan" at the link quoted by you. The FAQ does not seem to be authenticated by any Government order and is self prepared by Tax Gyan, probably with its partial or wrong knowledge about Tax matters and specifically the LTA.
First of all, Section 10(15) of the Income Tax, as quoted by the said "TaxGyan" about LTA is wrong. Section 10(15) deals with Income by way of interest, premium on redemption or other payment on such securities, bonds, annuity certificates, savings certificates, other certificates, etc., and does not have even distant relation with LTA.
Secondly, "TaxGyan" was wrong in its statement, as "employee (recieving LTA and claiming the same) must be traveling with his family on the journey to claim LTA, otherwise the journey will not be eligible for exemption.about travel by family." Family can perform journey separately than the employee, who can claim LTA from his employer.
Dhyan Singh
(Querist) 01 November 2012
Dear Sir,
Thank you for the elaborate and quick response to my query. From your explanation, can I interpret that there is no spscific condition put out by Income tax Act / Income tax rules or circulars / any Judicial order for my dependents to mandatoriy travel with me for claiming LTA?
Best regards,
Mukesh
Guest
(Expert) 01 November 2012
Dear Mukesh,
Income Tax Act does not provide any such restriction. Section 10(5) which deals with income from LTA, simply states, as follows, which you or any one can interpret easily:
EXTRACTS from SEC. 10
In computing the total income of a previous year of any person, any income falling within any of the following clauses shall not be included - (1) Agricultural income;
(5) In the case of an individual, the value of any travel concession or assistance received by, or due to, him, - (a) From his employer for himself and his family, in connection with his proceeding on leave to any place in India;
Provided that the amount exempt under this clause shall in no case exceed the amount of expenses actually incurred for the purpose of such travel.
Explanation : For the purposes of this clause, "family", in relation to an individual, means - (i) The spouse and children of the individual; and
(ii) The parents, brothers and sisters of the individual or any of them, wholly or mainly dependent on the individual.
