The very first 4-year block commenced in 1986 and covered the years till 1989
LTA is the payment made by the employer to the employee for expenses incurred on leave travel anywhere within India. As per present tax provisions, LTA exemption is provided for two travels undertaken in India in a block of four years. These provisions were introduced many e for providing higher benefit in terms of frequency of travel and coverage of eligible expenses.
Expenses such as fuel and maintenance of the vehicle, telephone, and communication, books and periodicals, salary for staff employed as a driver or other support staff, etc
Considering the changes in standard of living and increase in spending power of taxpayers, it is suggested to provide LTA exemption on annual basis. Further, in many situations, expenditure towards stay in a hotel, food, etc. forms a major part of journey costs and hence, the same could also be considered while calculating LTA tax exemption. This proposal would also promote the tourism and hospitality sector which is one of the most affected sectors due to the pandemic.
As per the present limits, salaried employees are allowed a standard deduction of Rs 50,000 from the taxable salary income. The rationale of providing such standard deduction is to cover many expenses incurred by the employees during employment. (περισσότερα…)