Please find below the creteria for availing LTA:
LTA is tax free for the amount you have submitted the bills.
Say in your package LTA is 25000/- and you have performed journey for 15000/- and submitted the relavent documents, 15000/- is exempted from tax as per sec 10 of IT Act and remaining amount is taxable.
The present blaock is January 2006 to December 2009.
Only domestic tranvel will be conisdered for claiming LTA.
LEAVE TRAVEL CONCESSION
L.T.C. is granted to an employee in connection with the journey on leave by him or his family. It is exempt from income tax within certain limits as under : -
For availing this benefit the employee should at least use his one day PL (Privileged leave).
Exemption is limited to amount actually spent.
Only two journeys in a block of 4 years are exempt. Block of four calendar years commencing from 1986. Fresh block commence from 1 January 2006 to 31, December 2009.
If LTA has not availed during any of the specified four year block periods on one of the two permitted occasions( or on both occasions), exemption can be claimed in the first calendar year of the next block(but in respect of only one Journey). This is known as “Carry over concession” In such case exemption so availed will not be counted for the purpose of claiming the future exemptions allowable in respect of 2 journeys in the subsequent block.
Quantum of exemption is limited to expenses on air fare, rail fare, bus fare only. No other expenses like scooter charges at both ends, porterage expenses during the journey and lodging/boarding expenses will qualify for exemption.
If the journey is performed by circuitous route, the exemption is limit to admissible only to shortest route. Where the journey is performed in a circular form touching different places, the exemption will be limited to what is admissible for the journey from the place of origin to the farthest point reached, by the shortest route.
Family in relation to individual means: Spouse and children of the individual, and the parents, brothers and sisters of the individual who are wholly and mainly dependent on him.
Exemption is available in respect of two children born after October 1, 1998.
Journey in different situation:
Journey performed by air: Economy fare of National carrier by shortest route or the amount spent which ever is less.
Journey performed by Rail: Amount of First –A/c rail fare by shortest route or amount spent whichever is less.
Origin and destination of the journey connected by rail and journey performed by any other mode of transport: Amount of First –A/c rail fare by shortest route or amount spent whichever is less.
Where recognized public transport exists: First class or deluxe class fare by the shortest route or amount spent, whichever is less.
Where no recognized public transport systems exists: Amount of First –A/c rail fare by shortest route or amount spent whichever is less.(as if the journey had been performed by rail)
In case the L.T.A. is en cashed without actually performing the journey the entire amount received by the employee would be taxed in his hands.