People adopt many ways to save tax, invest in many types. One of these great way is Leave Travel allowance. This is a tax -saving saving tool, which employees can take advantage of. The amount spent under LTA is tax free. If you also want to save income tax, then take leave from office before 31 March. Let us explain to you in detail about how you can use it.
LTA is a kind of allowance that companies give to their employees. Under this allowance, along with employees, the expenses of traveling children, parents or siblings, children are also included. Like HRA, LTA is also a part of your salary, which is mentioned in your salary package.
You plan a holiday and travel in India by 31 March 2025 to save tax under Section 10 (5) for FY 2024-25. If you connect with this plan, you can enjoy a great holiday with your family and also save on tax using any holiday travel allowance.
According to media reports, you cannot claim LTA under the new tax system and you cannot save tax. LTA exemption is not available under the new tax system, which means that employees who choose this system will not get any tax benefit on LTA. Instead, the entire amount of LTA will be completely taxable as part of their salary.
The last date for taking LTA tax exemption for the current LTA block (1 January, 2022-31 December 2025) is December 31, 2025. If you use this LTA block on or before 31 March 2025, you can save income tax for FY 2024-25. If you take LTA block after 31 March 2025, it will be applicable for FY 2025-26. Leave Travel Consestion (LTC) or Leave Travel Allowance (LTA) is a discounted travel facility launched to travel to any place in India during a four -year block, during which the benefit of this concession can be availed twice.
The good thing is that 31 March 2025 is a public holiday for most employees and it falls on Monday. This reflects the long weekends to be held on Saturday, Sunday and Monday. If you are working in a company where there is a holiday on Monday (March 31, 2025), then you should take full advantage of this holiday. Travel with your family and make memories; Also save tax.
Tax system: If you select the old tax system, you can claim LTA and avail tax exemption. Tax exemption only covers the cost of tickets for travel by air, rail or bus; Other expenses, such as housing, food, scenic spots or local transport, are not eligible for exemption.
To claim tax exemption on LTA, tickets related to tickets, boarding pass, hotel bill, expenditure on local transportation will have to be submitted to the employer with LTA claim form. The deadline of which is 31 March. For this, you will also have to provide your PAN card and bank account details so that there is no problem in getting reimbursement.
