How many times exemption from LTA can be claimed in a block of 4 years?

Can LTA exemption be claimed on every vacation. No, an LTA exemption is available for only two journeys performed in a block of four calendar years. A block year is different from a financial year and is decided by the Government for LTA exemption purposes.

How much LTA can be claimed in a year?

Availing of the LTA scheme would be considered as claiming of 1 trip in the block of 4 years. Usually, LTA can be claimed for exemption twice under the block of 4 years. The current block is of 2018-2021.

Can LTA 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.

How is LTA amount 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. The journey to the destination is undertaken via air travel.

How is LTA percentage calculated?

To calculate the total pension value for lifetime allowances, for these pensions, there’s a formula. Multiply your expected annual pension by 20 and add this figure to the amount of any tax-free, cash lump sum from that pension.

How much is LTA of Basic?

Note: The salary structures is updated effective FY 2018-2019.

Component	Recommendation
HRA	50\% of Basic + DA if metro and 40\% if non-metro
Conveyance	Rs. 1,600 a month
Medical	Rs. 1250 a month
LTA	No real benchmark, can even be used as a plug, but if not can set as 10\% of Basic