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Profile photo of SUNNY WADHWASUNNY WADHWA asked 1 year ago

EXEMPTION UNDER LTA

A salaried person is giving Taxi hire bills in order to claim exemption

under LTA.

 

Whether these bills are admissible or it shall be restricted to

first class AC rail fare.

 

Please advise

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1 Answers
Profile photo of Deepak Bholusaria, CADeepak Bholusaria, CA answered 1 year ago
  1. If the employee travels through air, an economy class fare of the Airlines is allowed as an exemption.
  2. If the employee does not travel through air and the places are connected through rail, AC First Class Rail fare is granted as an exemption.
  3. If the employee does not travel by rail or air and the places are also not connected by rail or air,
    • Where Recognised mode of transport is available, First or Deluxe Class fare of such transport is allowed as an exemption;
    • Where Recognised form of transportation is not available, an amount equal to the AC First Class Rail fare (the distance of the shortest route is considered) is allowed as an exemption.