Travel with your family and submit the tickets to your employer to save tax!

Leave travel concession or LTC as commonly referred, is an excellent tax saving tool in the hands of salaried Individuals. With LTC you can save tax as you or your family travel to any place in India.  LTC can really help you to save tax on expenditure, which anyways you would incur.

The amount exempt is the value of any travel expenses actually incurred restricted to concession or assistance received or due to you from your employer during your service or even after retirement from service or after termination of his service.

Points to be kept in mind:

a)      Only 2 journeys in a block of 4 years are exempt – Exemption on the aforesaid basis is available in respect of 2 journeys performed in a block of four calendar years (i.e. 1st January to 31st January), current block is (2010-2013);

b)      If you have not availed travel concession or assistance during any of the specified four-year block periods on one of the two permitted occasions (or on both occasions), exemption can be claimed in the first calendar year of the next block (but in respect of only one journey). The exemption so availed will not be counted for the purposes of claiming the future exemptions allowable in respect of 2 journeys in the subsequent block;

c)      The quantum of exemption is based upon actual expenditure incurred on the journey. In other words, without performing any journey and incurring expenses thereon, no exemption can be claimed;

d)     The exemption is strictly limited to expenses on air-fare, rail fare, and bus fare only. No other expenses can be claimed;

e)       The exemption shall be available only in respect of two children born after October 1, 1998.

Out motto at www.taxmantra.com is to free you from your tax worries and to guide you with proper tax planning. We provide in addition to filing of your tax return, efficient tax planning and full year tax support.

Join us in pursuit of simplifying individual taxation!

Alok Patnia

Founder and Director at Taxmantra

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