March 3, 2014 7:14 pm
Hello,I am going on holiday in last week of March. Can I claim LTA at the time of filing returns? If yes, then what is the process that I have to follow at the time of filing returns?
Dear Amit, yes is my answer.
Thanks Bemoneyaware & Ashal.
Ashal, so there is no separate column to enter LTA amount, I just have to deduct LTA from taxable income shown in my Form 16 and enter that amount in ITR. Right…
Dear amit, yes you can claim it in your ITR. You need to calculate your tax free LTA amount and deduct the same from your taxable salary income figure in form 16. Now put this adjusted figure as your taxable salary. Your calculated tax liability ‘ll be lower than actual tax paid by you and thus you ‘ll get the refund.
You can claim exemption for up to two journeys in a block of four calendar years. These time-period of four calendar years are called as blocks and are predetermined i.e they are also notified by the income tax department. The first block began in 1986 to 1989, the next block was 1990 to 1993 and so on.
Note that the applicable year is calendar year and not financial year. In other words, the last block period started on January 1, 2010 and ended on December 31, 2013. The new block started on January 1, 2014 and will end on December 31, 2017. For example, if you travelled during the month of November 2013, it fell in the block of 2010-13. But if you travelled in January 2014 to March 2014, it falls in block (2014-2017) though financial year in both the cases remains the same i.e. 2013-2014.
Note that You need to claim the LTA during the financial year when the travel happened.
For more details you can read What is Leave Travel Allowance or LTA
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