What is LTC exempted from income tax?

In October 2020, due to the covid-19 pandemic, the government announced an LTC cash voucher scheme that allowed salaried taxpayers eligible for LTC/LTA to claim the allowance tax exempt without travelling by purchasing goods and services as per the scheme’s conditions.

What all can be claimed under LTC?

To avail of the benefit under this scheme, employees are required to submit bills for purchases made between 12 October and 31 March. The amount required to be spent is equivalent to three 3 times the deemed LTC fare. Bills of goods and services with GST of ₹12\% or above can be claimed under the scheme.

What LTC benefits are taxable?

36000 per family member For FY 2020-21 also available to non-Government Employees. Many Salaried employees get Leave Travel Concession (LTC) from their Employers which is exempt to the extent it is actually spent on travelling. LTC which could not be spent is taxable in the hands of employee.

Is LTC taxable under new tax regime?

Employees who are planning to opt for the previous or old tax regime in the financial year 2020-21 can avail the tax exemption benefits under LTC cash voucher scheme. Instead of providing proof of travel, the employee has to furnish the invoice for purchasing the goods and services.

Can LTC be claimed in income-tax return?

As per chartered accountants, the Income-tax Act, 1961 is silent on whether the tax-exemption on LTC Cash Voucher Scheme can be claimed at the time of filing ITR. To enable such individuals to claim their LTC/LTA amount as tax-exempt, the government launched the LTC Cash Voucher scheme.

Is LTC part of 80C?

Among the services, life insurance is also included in the LTC Scheme. However, in case the benefit is already claimed on premium payment u/s 80C, it can’t be claimed under the LTC Scheme. So, in case your 80C limit is exhausted, you may still claim benefits under the LTC Scheme.

Is LTC cash voucher scheme taxable?

Maximum tax benefit to be lower of (A) and (B). This amount must be proportionately reduced if less money is spent. If Rs 3,00,000 is spent, the entire Rs 1,00,000 shall be tax free.

Can LTC be claimed in income tax return?

Is leave encashment under LTC cash voucher scheme taxable?

LTA/LTC is a tax break that can be availed by an employee for travel of self and family members anywhere in India. The leave encashment portion is taxable in the hands of an employee.

Can LTC voucher be claimed in ITR?

Is LTC taxable for government employees?

LTA/LTC is a tax break that can be availed by an employee for travel of self and family members anywhere in India. The leave encashment portion is taxable in the hands of an employee. The amount of LTA that can be claimed as tax-exempt is limited to the actual fare of rail/air/bus travel.

How do I claim LTA exemption while filing?

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. This way excess TDS can be claimed as refund in ITR.”