Leave Travel Allowance (LTA)
Leave Travel Allowance provided by the employer to travel for professional work is also taxable under the Income Tax Act. Deduction on the amount received as LTA can be claimed by the employees up to the amount of actual expense incurred (bills should be produced), only twice in 4 years. It doesn’t include any expenses on personal travel.
Leave Travel Allowance is restricted to:
- It should be domestic travel only.
- Mode of travel should be rail, air or any other public transport.
How to Save Tax in FY 2024-25?
Income Tax is a direct tax that is levied on any individual’s or entity’s income during a financial year. It is directly paid to the government, like all the other direct taxes. Saving tax in the fiscal year 2024-25 (FY 2024-25) involves strategic planning and taking advantage of various tax-saving opportunities available under different sections of the Income Tax Act 1961.