Sunday, January 15, 2017

Take note! Claiming LTA is set to get complex from this year

Take note! Claiming LTA is set to get complex from this year

The salaried class are likely to come under more scrutiny from employers this year. And, all perks like LTA, house rent allowance and interest paid on home loans will come under this heightened scrutiny. The government has made employers responsible for verifying whether the claims filed are according to the law. Earlier, companies went only by self-declaration of employees.

The regulations were changed to counter the Supreme Court’s ruling that employers are under no statutory obligation to collect bills and details to prove the employees have utilised the amounts obtained against claims on travel and related expenses, according to experts. They say the proofs required to claim a deduction could be more stringent now. Employees will also need to submit claims using a prescribed form (12BB).

While most other deductions are straightforward and well-defined, LTA regulations can get complex, depending on how you reached the destination and with whom you travelled. 

·         Single claim for multiple flights

·         Only for public transport

·         Fellow travellers matter

·         Carry over, if not claimed

Source | Business Standard | 16 January 2017

Regards

Pralhad Jadhav

Senior Manager @ Library
Khaitan & Co                                                                    


Website | https://sites.google.com/site/pralhadjadhavlib/home

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