Who doesn’t like to travel, especially when travelling could be fruitful? One of the many facilities that employees enjoy in India are the Leave Travel Concession (LTC) and Leave Travel Allowance (LTA). Using your LTA effectively could actually help you save up on a lot of money. The Other Home, would help you find a Vacation Rental, Homestay or an Outdoor Adventure properties so that you could make the best of your vacation having an added benefit of having an LTA offer as well as a getting a customized vacation rental or homestay according to your preferences.

1. Leave Travel Concession – How to Get the
Maximum Advantage
Who doesn’t like to travel, especially when travelling could be fruitful? One of the many facilities that
employees enjoy in India are the Leave Travel Concession (LTC) and Leave Travel Allowance (LTA).
Using your LTA effectively could actually help you save up on a lot of money.
Leave Travel Allowance is basically the cost of travel that is granted to an employee to travel in India.
LTA exemption can be claimed by an employee where the employer provides LTA to employee for a
leave to anywhere in India, while on a leave. This cost of travel includes only the cost of travel. The
mode of travel could be by air, by rail or any other means of transport with certain regulations. The
amount of exemption varies according to the mode of transport.
It is important to clearly understand what qualifies as
the amount available for exemption. If one is travelling
by air, the exemption available is the economy fare on
the national carrier on the shortest route. If one is
travelling to a destination connected by rail then the
exemption allowed is the first class AC fare by train on
the shortest route. For destinations that are not
connected by rail, an exemption of first class or deluxe
class fare on a recognized public transport can be
availed.
If you travel by car then LTA is permitted only if the car
is owned by a central government organisation, the
local body or the state government. If you resort to
private transport options like renting a car, you could
simply get a bill issued from the rental company. If the
bill is not accepted by your employer you could file
and income tax return and get a refund by claiming an
exemption.
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2. Family members directly dependent on the assessee can also avail the exemption. By family it means
Spouse and children as well as parents and siblings directly dependent on the assessee. Exemption is
not available for two or more children of an individual born after October 01, 1998. For children
born before this date there is no such restriction, the term child also includes step children and
adopted children of an individual.
If your spouse is also granted LTA allowance, you could both claim the LTA allowance independently
from your respective companies. If say in a given holiday you travel allowance have been more than
the LTA allowance granted to you by your company, your spouse could get a ticket for the remaining
amount from their company.
If you switch your job you could get LTA not only from your present employer but also the unutilized
LTA concession from your former employer. The Travel expenses more than the LTA allowance
granted to you will be subject to Tax deduction.
Every individual is entitled to this LTA twice in a period of 4 years. The exemption allowed is either
the LTA that an individual is entitled to or the amount incurred during the travel that is eligible for
exemption, whichever is the lesser of the two amounts. Leave Travel Allowance is allowed to your
hometown once in a block of two years. The LTA is a great way to get an exemption from the hefty
TDS that eats up half your salary.
The LTA is granted twice in a period of 4 years. These four
years are called a block of four years for the reference of
people applying for LTA. The Current block is 2010- 2013.
If one does not use their LTA in the present block, they
could carry forward their LTA to the first year of the next
block, while making use of the next 2 LTA allowance in
the last 3 years of the next block. The LTA allowance can
be claimed just once every year. You cannot make a claim
for two LTA allowance in one year.
While claiming the LTA it is important that the assessee has all the documents of the amount spent
to allow exemption. Mere certificate that is received from the employee of the amount spent is not
enough to claim an exemption. The proof of travel that should be documented includes the tickets,
boarding passes, and the likes. If the booking is done through a travel agent it is important to also
document the invoice of the Travel Agent. Such documents come handy during the audit of the tax
return of the individual.
The employee does not necessarily have to submit his travel
bills to his employer. Sometimes employers insist on having a
copy of the travel bills of the employee, but it is the employees
call. If one forgets to claim LTA and the employer has deducted
tax on the amount paid, this money can be claimed in the
income tax return and the tax that was previously deducted
could be refunded back.
For more details, pleas mail us at: support@theotherhome.com or call us at 011-65028027 / 25985380

3. It is also important to note that you are eligible for exemption if you are travelling with your family.
Also only the to and fro cost of travelling is only eligible for exemption. Other expenses like food,
boarding, lodging, conveyance charges do not qualify for exemption. The Other Home, would help
you find a Vacation Rental, Homestay or an Outdoor Adventure properties so that you could make
the best of your vacation having an added benefit of having an LTA offer as well as a getting a
customized vacation rental or homestay according to your preferences. Choose from numerous
vacation rental or homestay options in the breath taking scenic locations like Goa, Himachal
Pradesh, Karnataka, Kerala, Punjab and Uttarakhand.
After the elimination of the Fringe Benefit Tax that was more beneficial to an employee, Employees
are now extensively trying to use the LTA as much as possible. Travel agencies are also banking on
such schemes to make the best and reliable packages that could attract a lot of customers.
LTA packages are now available in all parts of India. With such attractive offers, all the tourist
destinations being covered under the LTA, as well as the TDS saved on your salary, using LTA
effectively could prove to be very fruitful to an employee. It is important to plan your trip smartly
and make use of your LTA allowance in the best possible way.
Write to us to design an itinerary special designed to suit the way you define a perfect holiday. You
could write to us at support@theotherhome.com.
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@theotherhome. You can plan your dream holiday with us, visit The Other Home.
For more details, pleas mail us at: support@theotherhome.com or call us at 011-65028027 / 25985380