Travel License: The 2022-23 financial year is in its final stage. In such a situation, people look for different ways to avoid income tax. People are looking for different ways to get tax exemption. Did you know you can also get Leave Travel Allowance (LTA) tax-exempt? The company assumes the cost of travel tickets for its employees through LTA. This also covers the cost of your family’s tickets. You can claim tax exemption on domestic travel through LTA. However, it does not include international travel.
The tax exemption on this allowance is available on limited trips only. You can’t get it every year. On LTA, the tax exemption can only be used on ticket costs. This may include the cost of train, plane or road tickets. Expenses for hotel rent, food or shopping, etc. are not included in this.
How many times can I get a waiver on LTA?
You can take the license travel allowance only twice in four years. In it, you can get tax exemption on the cost of the ticket for the trip made within the borders of the country. The tax exemption provision on LTA has been made under section 10(5) of the Income Tax Act 1961. If both husband and wife are employed, they can optionally take advantage of tax exemption on LTA every year.
Who gets the LTA benefit in the family?
Only the husband, wife and two children can benefit from this subsidy. Dependent parents of employed workers can also obtain their benefit. If your siblings depend on you, they can benefit too. If they are married and working somewhere, they will not get the benefit.
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