Thursday, March 08, 2012

Why can't we claim LTA on these?


Govt regulations allow a certain amount from salary income to be excluded from taxable income, if it is spent on travel. This is known as LTA (Leave Travel Allowance)

This comes with lot of terms and conditions.

LTC can be claimed only on bus/train/air tickets. It doesn’t cover stay, international travel and many other recreational activities.

Following activities which I occasionally do are not eligible for LTA

A cruise in a ship
An overnight cruise to high seas (example, in AMET Cruises) costs about 5k per person per day. A family trip comes to 20k plus. But this is not allowed under LTA
Related: Amet Cruises Cochin * Chennai 

An international trip
An Air Asia flight to Kuala Lumpur or Bangkok is cheaper than a spicejet flight to Delhi. From Chennai going abroad is cheaper than going to the Himalays for a vacation. However, overseas flight tickets are not eligible for LTA

A self drive car rental
If I rent it with driver and pay per km, it is eligible for LTA. However, if I rent the same car under self drive mode, paying few thousands as rent per day and fuel extra, it is not eligible for LTA

A trekking expedition:
Many organizations arrange trekking expeditions- near Himalayas or otherwise. Typically these treks cost about 10k onwards+ travel expense from your city till starting point of city. Amount spent on trekking can’t be claimed under LTA

Why can't I claim LTA on above? Why not? Your thoughts please

5 comments:

ವಿ.ರಾ.ಹೆ. said...

"Why can't I claim LTA on above? Why not? "

Just becoz these are not included in LTA rules. Govt can do that I think !

Shrinidhi Hande said...

:)

Trails of a Traveler said...

Even worse, some companies do not let you claim LTA even for some of the mode of transports that govt itself allows.
For example, in case a taxi fare to a particular destination is less than the cost of First class AC in train, we can claim the taxi charges itself. But some companies do not allow it. They allow only Air fare and Train fare.
Wondering what would one do if train or flight is not available for some particular place...

Ram

Shrinidhi Hande said...

Ram: If companies are not accepting it you can claim separately during IT return via your tax consultants.

Also cost of taxi can always be cheaper than a/c fare for 4-5 members of family put together

Reny said...

Need to find the real reason, but fact is people who spend own effort and drive have to pay tax but others who get fake bills can save tax. This is life is India, there are lot of old mindless rules, which nobody get time to look at while competing for the next parliment seat.

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