Leave Trave Allowance

[Shyam Naik]

Dear All,

An employee is undertaking travel. The period of travel is 30/03/16 to 04/04/16.

He has already paid for the Air Ticket & Lodging.

Whether he is eligible for exemption of LTA during the year 2015-16.

Thank you.

[Ganeshan Kalyani]

In my view, Yes. However you should talk to your company HR department.

[KASTURI SETHI]

Sh.Ganeshan Kalyani Ji,

Pl. note the period. Is there any change in the Budget, 2016 on this issue ? Pl. confirm.

[KASTURI SETHI]

Normally in Income Tax notifications are effective prospectively ?

[Ganeshan Kalyani]

Sir, LTA can be claimed twice in a block of four years. Current block financial year is 2014 to 2017. Hence he should be able to claim the LTA. Thanks.

AI Summary

Leave Travel Allowance eligibility when travel spans financial years - claimability depends on block entitlement and employer verification. The issue is whether Leave Travel Allowance (LTA) is exemptible when travel spans two financial years and the employee paid for travel and lodging; respondents advise employer verification but conclude LTA is claimable under the rules permitting two claims within the relevant four year block, subject to statutory conditions and any operative changes in budgetary notifications.