Claiming LTA tax exemption when source and destination are completely different

[trisagion3]

Wanted to claim LTA tax exemption (FBP) on one of my recent travel journey. But the thing is my source and destination in both outward and return journey tickets are completely different due to a couple of complications that I faced. (Took taxi, flight got canceled at connecting airport).

So I wanted to understand if I can still claim tax exemption under this? Below is how my journey in tickets/boarding passes look like,

Outward journey:
Point A to point C (Flight was from A>B>C, however I had to get off at connecting airport B due to bad weather flight cancellation ).

Return journey:
Point D to point E (via point F connecting flight). Note that the return journey wasn’t from point C because I took a private taxi from point C to point D.

Understand this might sound a bit complicated, but any help would be greatly appreciated.

 

[patrick72]

@trisagion3 Can someone please ELI5 on how LTA works and how I can use it to save those bloody taxes?

 

[trisagion3]

@patrick72 Someone might be able to give a better explanation, but I'll try.
Declaration : Beginning of the FY you tell your company to set aside X amount of money for LTA ( limit depends on your ctc structure). At the end of FY company reimburses that amount when you give them proof of travel (tickets / boarding pass). Tax isn't applicable on this amount.

Now there a couple of rules for claiming LTA like you can claim two travel in a predefined block of 4 years, local domestic travel only etc. You can look up these rules on Google.

 

[resjudicata]

@trisagion3

local travel only

Domestic. Not local

 

[stefo]

@trisagion3 Do you have to be on leave for the days you claim LTA for?
Say if I work in Hyderabad and travel to Delhi for a week, but am still working from home. Will I be eligible to claim LTA for that travel(flight tickets)?

 

[trisagion3]

@stefo Yes, you've to be on leave during that period. But the rule might vary from company to company.

 

[kencram1]

@trisagion3 I understand it is upto the company , whether to give the LTA .

I had a case where destination was not connected by flight. Went from town 1 -> airport A -> town 2 , and return via town 2 -> airport B -> town 1.

To make it easier for the payroll team to understand, I added map and wikipedia entry to show nearest airports.

I got the LTA. YMMV, but best to put details in an understandable manner

 

[trisagion3]

@kencram1 Think in your case the source and destination are same in both directions of the journey, which is covered under LTA guidelines.
How did you cover the journey from town to airport? Was it public transport and did you have bills for the same?

 

[kencram1]

@trisagion3 I took a private taxi. Did not claim for it. I only claimed the airfare which was bulk of the expense.

 

[resjudicata]

@trisagion3 As long as you started trip from place A and finally returned to place A during the time you were on leave, it claim may be entertained. Try including proof of travel from point E to A.

Taxi bills are also admissible for LTA, between cities, provided certain conditions are followed. The claim will be settled based on rail fare for the distance.

 

[trisagion3]

@resjudicata Thing is my hometown is point E. Initially I had made a travel from point E to A via car. But the issue is I don't have any bills for it. I'm guessing I won't be able to claim since my origin and final destination are different.

 

[stefo]

@resjudicata Do you necessarily have to be on leave to claim LTA?

 

[felixdane]

@trisagion3 Yup sadly if you can not show any txn between point E to A.

Mostly it will be rejected on technicality issues.

 

[trisagion3]

@felixdane That sucks.. Thanks anyways.

 

[tuy%E1%BA%BFt4634]

@trisagion3 Is LTA and LTC the same.?

 

[glasmom]

@trisagion3 There are clause sometimes that source should be point A always. Just check that.. your outward journey is totally claimable . But i am not sure about return one.

 

[trisagion3]

@glasmom Interesting. I found some articles saying that one way journey can be claimed under LTA.

Between outward and return journey, I can choose the costlier one and claim, right? Why do you think I can't claim the return journey?

 

[kybekynekane]

@trisagion3 Can't you just claim LTA while filing ITR? I assume this is only if you have LTA component in your salary structure

 

[kona5]

@kybekynekane no