EXEMPTION UNDER LTA

[S.C. WADHWA]

A salaried person is giving Taxi hire bills in order to claim exemption under LTA.

Whether these bills are admissible or it shall be restricted to first class AC rail fare.

Please advise

[DR.MARIAPPAN GOVINDARAJAN]

It should be done in accordance with the eligibility conditions for such reimbursement made between the employer and the employee.

AI Summary

LTA exemption: employer-employee eligibility determines admissibility of taxi hire bills under travel reimbursement rules. Admissibility of taxi hire bills for a LTA exemption is determined by the eligibility conditions governing reimbursement established between the employer and the employee; the employer-employee reimbursement policy controls whether such charges are allowable in place of conventional travel fares.