Should I take LTA in salary or as special allowance – will it make difference ?

POSTED BY Patrick ON March 20, 2014 8:51 pm COMMENTS (3)

My company is giving me an option to take LTA in salary or as special allowance. I don’t know how this will affect my salary or what are the pros and cons of this.

Please guide me.

3 replies on this article “Should I take LTA in salary or as special allowance – will it make difference ?”

  1. ashalanshu says:

    Dear Patrick, please google a bit to understand LTA taxation rules.

    Thanks

    Ashal

  2. Patrick says:

    Hi ashalanshu,

    I didn’t get this. Please explain it more or give some calculation or example.

  3. ashalanshu says:

    Dear Patrick, in either case it’s taxable. If it’s availed as LTA, you do have limited option to claim tax free status against the actual travel done by you, conforming LTA rules.

    Thanks

    Ashal

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