What is travel concession?
What Is Leave Travel Concession? Leave Travel Concession (LTC), as the name suggests, is a benefit offered to salaried employees that helps them travel domestically. LTC benefits are provided to employees for two trips in a four-year block.
What is leave travel concession in India?
Leave travel concession is an allowance given by an employer to an employee for meeting travel expenses when the employee is on leave from work. Leave travel concession is tax-exempt under the Income Tax Act. The exemption is available only subject to the satisfaction of certain conditions.
What is special cash package in lieu of LTC?
The Special Cash Package Scheme in lieu of one LTC is to compensate and incentivize consumption by Government Employees and the benefits can be availed up to 31.03. 2021. The LTC cash voucher scheme circular dated 12.10. 2020 provides for advance to Government employees in lieu of LTC fare and Leave encashment.
What is covered under LTC?
LTA/LTC is a tax break that can be availed by an employee for travel of self and family members anywhere in India. The leave encashment portion is taxable in the hands of an employee. The amount of LTA that can be claimed as tax-exempt is limited to the actual fare of rail/air/bus travel.
How do I avail leave travel allowance?
Procedure to claim LTA is generally employer specific. Every employer announces the due date within which LTA can be claimed by the employees and may require employees to submit proof of travel such as tickets, boarding pass, invoice provided by travel agent etc along with the mandatory declaration.
How is leave travel allowance calculated?
Illustration – If the LTA given by the employer is INR 35,000 and actual eligible cost of travel incurred by the employee is INR 25,000, then the exemption will be granted on only INR 25,000 and balance INR 10,000 would be included in taxable salary income.
Who can claim LTA?
Leave Travel Allowance or LTA allows individuals to claim tax exemption for a trip made within India for the taxpayer and his/her family under Section 10(5). Under LTA, the employees can claim the fare tickets as an exemption for travelling anywhere in India twice in a block of 4 years.
What is the maximum LTA limit?
Full LTA that is part of CTC can be claimed with receipts. LTA is the short form for Leave Travel Allowance….Contact Us – Order, Payment Issues.
| Component | Month/ Annual | Max. Tax Exemption |
|---|---|---|
| LTA | 1k/12k | No Maximum limit |
| Personal Allowance | 11k/131k | FULLY Taxable |
| Total | 23k/276k |
Can I take leave encashment without LTC?
Government officers are allowed to encash ten days earned leave at the time of availing of LTC to the extent of sixty days during the entire career. The leave encashed at the time of LTC will not be deducted from the maximum amount of earned leave encashable at the time of retirement.
How do I claim my LTC special cash package?
To claim the benefit under the scheme, an individual is required to fulfil the following conditions: i) Spend three times the amount of deemed LTC fare on the purchase of goods/services attracting GST of 12% or more; ii) Purchases must be made during the period between October 12, 2020 and March 31, 2021.
Who is eligible for leave travel concession?
LTA can be claimed for travel fare or tickets within India only, expenses incurred for accommodation, or any other fee will not be eligible for exemption. An employee can produce his/her travel-related bills for the journey through air, train, bus, or any other mode of transport and save on taxable income.
What is difference between LTA and LTC?
This Leave Travel Allowance (LTA) can be claimed when an employee goes on a vacation and submits the actual bills to the employer. This amount is also sometimes referred to as Leave Travel Concession (LTC).
What is leave travel concession?
Sometimes it is also termed as Leave Travel Concession (LTC). The amount which is paid as fare for travel via air, rail or bus is allowed as exemption subject to maximum limits.
What is special cash package in lieu of leave travel concession (LTC)?
Central government on 12.10.2020 has announced a special cash package in lieu of leave travel concession (LTC) fare for government employees for the block of 2018-21. This step was taken because of the effect of Covid-19 because of which transport and hospitality sector was disrupted and employees were not able to use their leave travel concession.
What is the cash equivalent of leave travel concession under GST?
Cash equivalent of leave travel concession if an amount equal to 3 times is spent by the employee. The amount should be spent on goods/ services which carry GST rate of more than 12% from GST registered vendors and payment should be made through digital mode along with invoice indicating GST number and amount of GST paid.
What is the meaning of leave travel allowance?
Leave travel allowance is an allowance given by an employer to his employee for travelling in India with or without family. Such allowance is to be spend on travelling from public means of transport i.e by air, rail or bus and not for other expenses such as hotel room charges, food expenses etc.