Hi
As per Sec 10 (5) of the IT Act, Leave Travel Concession is exempted is conditions are met as perscribed in Rule 2B.
My Query: as per Direct Tax Ready Reckoner by Dr. V.K. Singhania, specified perquisite including LTC are taxable in the hand of specified employee.
- Does that mean LTC can only be exempted only if it is given to an non sepcified employee?
It specifically says that the classification between specified and non specified employee is of limited application in the practical sense. This is because an employee is referred to as a non specified employee only when he is drawing annual salary of Rs.50,000/- or less in a financial year.
Does it mean that a employee who is earling more than Rs.50k in a year in not eligible for LTC?
Please advice
Thanks in advance
Regards
Ramesh
