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Claiming LTA Exemption? Here's Why You Should Submit Proof To Employer By March 31 – Prime Time News24


The deadline to submit LTA proofs to your employer to assert the tax exemption is often March thirty first. (Consultant picture)

LTA or Depart Journey Allowance is a tax profit provided by employers to assist staff save on taxes associated to journey bills throughout their depart.

LTA (Depart Journey Allowance) exemption is a tax profit supplied by the Revenue Tax Act, which permits people to assert exemptions on the bills incurred throughout home journey. Nonetheless, to avail of this exemption, people want to supply proof of journey to their employer. This proof sometimes contains journey tickets, boarding passes, and different associated paperwork.

What Is LTA?

LTA or Depart Journey Allowance is a tax profit provided by employers to assist staff save on taxes associated to journey bills throughout their depart.

The deadline to submit LTA proofs to your employer to assert the tax exemption is often March thirty first. Lacking this deadline can imply you lose out on the tax profit and have to assert LTA whereas submitting your Revenue Tax Return (ITR), which may be extra cumbersome.

Whereas it’s true that claiming LTA exemption in your ITR could be a trouble, offering the mandatory proof to your employer throughout the stipulated deadline is important to avail of the exemption. If you happen to miss the deadline, you could not be capable to declare the exemption for that exact monetary 12 months.

To make the method smoother, it’s advisable to maintain monitor of your journey bills all year long and make sure you retain all related paperwork. This can make it simpler to compile the mandatory proofs when submitting them to your employer.

Right here’s a fast breakdown of LTA exemption:

  • Profit: You’ll be able to declare tax exemption on journey bills for as much as two journeys inside a block of 4 years (present block: 2022-2025). This is applicable to journey bills of your self and your loved ones (partner, youngsters, dependent dad and mom and siblings).
  • Exemption Restrict: Solely the precise journey price (flight, prepare, bus tickets) is exempt, not bills like meals, lodging, or native journey.
  • Proofs Required: Submit paperwork like journey tickets, boarding passes, or resort payments (if choosing LTC) to your employer by the deadline.

By submitting proofs to your employer, they’ll exclude the exempt quantity out of your taxable revenue. This protects you the effort of claiming LTA whereas submitting ITR.

Disclaimer: The views and funding suggestions by consultants on this Prime Time News24.com report are their very own and never these of the web site or its administration. Readers are suggested to test with licensed consultants earlier than making any funding choices.

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