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Lta

I need to have more clarification on LTA. As per IT rules, LTA has a 4 years block i.e.2006-2009 which is calendar year and currently it is 2010-13. Now our company follows financial year April - March. I would need clarification on the following:

1) Since LTA has a four year block as per IT rules, suppose an 'X' employee who has joined in April 2010 and has claimed LTA in March 2011 for a travel made in November 2010 with tax exemption. Again he claims LTA in October 2011 for a travel made in August 2011 with tax exemption. In May 2013 he again claims LTA with tax exemption for a travel made in the May 2013. My question is-

Can he be given tax exemption for 2011 twice, though it is different financial years. Since LTA is for calendar year, he has taken twice in 2011 but the financial year is different.

For 2013 should he be given tax exemption. As per IT rules we can claim twice in 4 years block and he has already taken exemption in 2011 twice.

Please clarify.

Regards,

Linette

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Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 ) 02 August 2013

The Income-Tax department allows you to claim exemption from tax on this amount only twice in a block of four calendar years.

These blocks are also notified by the department. For example, 2012 falls in the 2010-2013 block. This implies that in these four years, you can claim the exemption for the LTA amount only twice.

But what if you have travelled only once in the 2010-2013 block? In such a case, you can carry forward the travel to the first year (2014) of the next block (2014-2017). In addition to this, you will be eligible to travel two more times in the next block.