Can we claim LTA in 2020?

Such a purchase should have been made between 12th October 2020- 31st March 2021. The exemption should not exceed Rs 36,000 per person or 1/3rd of the ‘specified expenditure’, whichever is lower. Usually, LTA can be claimed for exemption twice under the block of 4 years.

Can LTA exemption be claimed while filing returns?

LTA is an allowance on which tax exemption has to be claimed. In such cases, if LTA allowance is included in Form 16 as taxable portion, then taxpayer can claim this exemption even while filing ITR, provided all other conditions of GST invoices and no cash payment are fulfilled.

Can LTA be claimed in the first year?

However, the carried forward LTA eligibility has to be utilised in the first year of the next block. For example, in case an employee has claimed LTA only once in the four-year calendar block of 2018 to 2021, he can claim the LTA for travel undertaken in the first year of the next block, ie. in 2022.

How to claim LTA exemptions under GST?

For claiming the LTA exemption, both the categories of employees have to spend at least three times of the value of the their LTA entitlement. For claiming both the benefits, you have to buy goods and services from a seller who is registered under GST, and GST @ 12\% or higher is payable on such goods or services.

Is LTA a financial year or a calendar year?

For claiming LTA, it is a calendar year and not financial year. For e.g. 2015 means 1-Jan-2015 to 31-Dec-2015. 2016 means 1-Jan-2016 to 31-Dec-2016. So current block year (4 years) starts from 1-Jan-2014 and ends at 31-Dec-2017.

What are the tax benefits of LTA?

The tax laws allow exemption for any money received by an employee for travelling to any place within India, either himself alone or along with his eligible family members, on holidays or otherwise or during employment or on retirement. An employee can avail tax benefit of LTA for two journeys during a predefined block period of 4 calendar years.