Tax exemption on leave travel allowance (LTA) can be claimed only on domestic travel and can not be clubbed with an overseas journey.
If an air ticket comprises Indian & overseas components, no exemption will be provided either on the entire cost or / on partial Indian travel.
This was clarified in a recent ruling by the Chandigarh bench of the Income Tax Appellate Tribunal (ITAT) while hearing an appeal of a PSU bank employee.
Under the tax laws, even for domestic travel where the journey is performed in a circular form touching different places, the exemption is limited to the travel expenses that would be admissible from the place of origin to the farthest point reached in India by the shortest route.
No comments:
Post a Comment