Income tax return (ITR) The filling process starts from 1 April. If you are preparing to file income tax returns and you may face some trouble. However, you can also file income tax returns without Form 16 and also claim Leave Travel Allowance. If you have Form 16 but your company does not include a holiday travel allowance (LTA) in it, you can claim income tax exemption while filing returns. However, for this you will have to give proof of travel. This may include train/flight/bus tickets, hotel receipts, and other travel expenses bills.
What do tax experts say?
Tax experts say that LTA falls under the category of allowances among the pay components and is eligible for exemption under Section 10 (5) of the Income Tax Act. If the employer has not included it in Form 16, the employee can manually announce allowances and claim exemption when filing ITR.
Claim LTA without Form 16
- Report the LTA under the allowance section in the salary details of the ITR form.
- Claim exemption separately under Section 10 (5).
- Keep appropriate documents such as travel tickets, boarding passes and payment receipts, as LTA claims are subject to verification by tax authorities.
- LTA exemption is available only under the old tax system.
- Under Section 115BAC, employees choosing new tax system cannot claim this benefit.
- LTA exemption can be claimed only twice in a four -year block.
- International trips are not eligible for exemption.
- The Income Tax Department can investigate false claims. So do not give any wrong information.
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