Hi All,
If the employee does not have LTA component in pay structure. can they claim LTC exemption?
if not, what are the options for those employees?
Please suggest
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LTA can be claimed
If it is part of monthly pay and reflect in the pay slip
Also can claim as a one time if it is included in the CTC
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Hi Anushri,
It differs from company to company. Your company will have FBP (Flexi benefit policy) as a part of payroll policies.
Please reach out to your HR for any such policies. You have to earn LTA as a part of gross salary to claim the benefit u/s 10(5).
The LTA earned by each employee is uploaded as information in Form 24Q - Salary e-TDS Return filed by your company to the Government. So, it’s a chain of processes to be followed and greytHR can help you with this.
You can read the blogs here for more insights:
For employees who have not earned LTA till Feb 2021 as a part of Salary - has an option to earn LTA in March 2021 to the extent available as per company’s internal policies.
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Please let me know if LTC exemption calculation is correct.
Amount spent on resort stay by self and eligible family members = 31,270
LTC benefit availed can be = 31,270 / 3 = 10,423
Is it correct?
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Hi, Yes, it is correct
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LTA exemption is available only for the amount actually incurred on the performance of such travel. You cannot claim LTA benefit for a resort stay!!
Please refer to the rule of income tax below.
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LTA has to be paid as part of salary. If it is not paid in the salary he will not get exemptions.
However as a practice many companies will adjust the special allowance portion and show it as LTA whenever there is a claim from employees. This is not a suggested practice but it has been followed by many.
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