travelling expenses under income tax act

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Tax Deductions for Business Travelers

When you are self-employed, you generally can deduct the ordinary and necessary expenses of traveling away from home for business from your income. But before you start listing travel deductions, make sure you understand what the Internal Revenue Service (IRS) means by "home," "business," and "ordinary and necessary expenses."

Ordinary vs. necessary expenses

Business home, not home sweet home, transportation expenses on a business trip are deductible, fees for getting around are deductible, lodging, meals and tips are deductible.

Key Takeaways

Typically, you can deduct travel expenses if they are ordinary (common and accepted in your industry) and necessary (helpful and appropriate for your business).
You can deduct business travel expenses when you are away from both your home and the location of your main place of business (tax home).
Deductible expenses include transportation, baggage fees, car rentals, taxis and shuttles, lodging, tips, and fees.
You can also deduct 50% of either the actual cost of meals or the standard meal allowance, which is based on the federal meals and incidental expense per diem rate.

The IRS defines expense ordinary and necessary expenses this way:

An expense is ordinary if it is common and accepted in your industry
An expense is necessary if it is helpful and appropriate for your business

You can claim business travel expenses when you're away from home but "home" doesn't always mean where your family lives. You also have a tax home—the city where your main place of business is located—which may not be the same as the location of your family home.

For example, if you live in Petaluma, California but your permanent work location is in San Jose where you stay in hotels and eat out during the work week, you typically can't deduct your expenses in San Jose or your transportation home on weekends.

In this situation San Jose is your tax home , so no deductions are permitted for ordinary and necessary expenses there.
Your trips to your home in Petaluma are not mandated by business.

Go by plane, train or bus—the actual cost of the ticket to ride is deductible, as well as any baggage fees. If you have to pay top dollar for a last-minute flight, the high-priced ticket is a business expense, but if you use frequent-flyer miles for a free ticket, the deduction is zero.

If you decide to rent a car to go on a business trip, the car rental is deductible. If you drive your own vehicle, you can usually take actual costs or the IRS standard mileage rate. For 2023 the rate is 65.5 cents per mile. You also can add tolls and parking costs onto your deduction. This amount increases to 67 cents per mile for 2024.

TurboTax Tip: Even if you use the federal meals and incidental expense per diem rates to calculate your deductions, be sure to keep receipts from all your meals and incidental expenses.

Fares for taxis or shuttles can be deducted as business travel expenses. For example, you can deduct the fare or other costs to go to:

Airport or train station
Hotel from the airport or train station
Between your hotel and the work location
Between clients in the area

If you rent a car when you arrive at your destination, the expense is deductible as long as the car is used exclusively for business. If you use it both for business and personal purposes, you can only deduct the portion of the rental used for business.

The IRS allows business travelers to deduct business-related meals and hotel costs, as long as they are reasonable considering the circumstances—not lavish or extravagant.

You would have to eat if you were home, so this might explain why the IRS limits meal deductions to 50% of either the:

Actual cost of the meal
Standard meal allowance

This allowance is based on the federal meals and incidental expense per diem rate that depends on where and when you travel.

Generally, you can deduct 50% of the cost of meals. Alternatively, if you do not incur any meal expenses nor claim the standard meal allowance, you can deduct the amount of $5 per day for incidental expenses. You can also deduct incidental expenses, such as:

Fees and tips given to hotel staff
Fees for porters and baggage carriers

But don't forget to keep track of the actual costs.

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The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business.

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What Are Travel Expenses?

Understanding travel expenses, the bottom line.

Deductions & Credits
Tax Deductions

Travel Expenses Definition and Tax Deductible Categories

Michelle P. Scott is a New York attorney with extensive experience in tax, corporate, financial, and nonprofit law, and public policy. As General Counsel, private practitioner, and Congressional counsel, she has advised financial institutions, businesses, charities, individuals, and public officials, and written and lectured extensively.

For tax purposes, travel expenses are costs associated with traveling to conduct business-related activities. Reasonable travel expenses can generally be deducted from taxable income by a company when its employees incur costs while traveling away from home specifically for business. That business can include conferences or meetings.

Key Takeaways

Travel expenses are tax-deductible only if they were incurred to conduct business-related activities.
Only ordinary and necessary travel expenses are deductible; expenses that are deemed unreasonable, lavish, or extravagant are not deductible.
The IRS considers employees to be traveling if their business obligations require them to be away from their "tax home” substantially longer than an ordinary day's work.
Examples of deductible travel expenses include airfare, lodging, transportation services, meals and tips, and the use of communications devices.

Travel expenses incurred while on an indefinite work assignment that lasts more than one year are not deductible for tax purposes.

The Internal Revenue Service (IRS) considers employees to be traveling if their business obligations require them to be away from their "tax home" (the area where their main place of business is located) for substantially longer than an ordinary workday, and they need to get sleep or rest to meet the demands of their work while away.

Well-organized records—such as receipts, canceled checks, and other documents that support a deduction—can help you get reimbursed by your employer and can help your employer prepare tax returns. Examples of travel expenses can include:

Airfare and lodging for the express purpose of conducting business away from home
Transportation services such as taxis, buses, or trains to the airport or to and around the travel destination
The cost of meals and tips, dry cleaning service for clothes, and the cost of business calls during business travel
The cost of computer rental and other communications devices while on the business trip

Travel expenses do not include regular commuting costs.

Individual wage earners can no longer deduct unreimbursed business expenses. That deduction was one of many eliminated by the Tax Cuts and Jobs Act of 2017.

While many travel expenses can be deducted by businesses, those that are deemed unreasonable, lavish, or extravagant, or expenditures for personal purposes, may be excluded.

Types of Travel Expenses

Types of travel expenses can include:

Personal vehicle expenses
Taxi or rideshare expenses
Airfare, train fare, or ferry fees
Laundry and dry cleaning
Business meals
Business calls
Shipment costs for work-related materials
Some equipment rentals, such as computers or trailers

The use of a personal vehicle in conjunction with a business trip, including actual mileage, tolls, and parking fees, can be included as a travel expense. The cost of using rental vehicles can also be counted as a travel expense, though only for the business-use portion of the trip. For instance, if in the course of a business trip, you visited a family member or acquaintance, the cost of driving from the hotel to visit them would not qualify for travel expense deductions .

The IRS allows other types of ordinary and necessary expenses to be treated as related to business travel for deduction purposes. Such expenses can include transport to and from a business meal, the hiring of a public stenographer, payment for computer rental fees related to the trip, and the shipment of luggage and display materials used for business presentations.

Travel expenses can also include operating and maintaining a house trailer as part of the business trip.

Can I Deduct My Business Travel Expenses?

Business travel expenses can no longer be deducted by individuals.

If you are self-employed or operate your own business, you can deduct those "ordinary and necessary" business expenses from your return.

If you work for a company and are reimbursed for the costs of your business travel , your employer will deduct those costs at tax time.

Do I Need Receipts for Travel Expenses?

Yes. Whether you're an employee claiming reimbursement from an employer or a business owner claiming a tax deduction, you need to prepare to prove your expenditures. Keep a running log of your expenses and file away the receipts as backup.

What Are Reasonable Travel Expenses?

Reasonable travel expenses, from the viewpoint of an employer or the IRS, would include transportation to and from the business destination, accommodation costs, and meal costs. Certainly, business supplies and equipment necessary to do the job away from home are reasonable. Taxis or Ubers taken during the business trip are reasonable.

Unreasonable is a judgment call. The boss or the IRS might well frown upon a bill for a hotel suite instead of a room, or a sports car rental instead of a sedan.

Individual taxpayers need no longer fret over recordkeeping for unreimbursed travel expenses. They're no longer tax deductible by individuals, at least until 2025 when the provisions in the latest tax reform package are due to expire or be extended.

If you are self-employed or own your own business, you should keep records of your business travel expenses so that you can deduct them properly.

Internal Revenue Service. " Topic No. 511, Business Travel Expenses ."

Internal Revenue Service. " Publication 463, Travel, Gift, and Car Expenses ," Page 13.

Internal Revenue Service. " Publication 5307, Tax Reform Basics for Individuals and Families ," Page 7.

Internal Revenue Service. " Publication 463, Travel, Gift, and Car Expenses ," Pages 6-7, 13-14.

Internal Revenue Service. " Publication 463, Travel, Gift, and Car Expenses ," Page 4.

Internal Revenue Service. " Publication 5307, Tax Reform Basics for Individuals and Families ," Pages 5, 7.

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Section 10 Of Income Tax Act: Exemptions, Allowances & How To Claim It?

Updated on : Mar 13th, 2024

12 min read

The Government of India provides some exemptions in order to reduce your income tax burdens. Section 10 of the Income-tax Act, 1961 talks about those exemption provisions and the terms and conditions on which one can avail a tax exemption. Here’s more on this matter.

What Is Section 10 Of Income Tax Act?

While calculating the tax liability of an individual, there are certain income sources that do not form a part of the total income. Section 10 of the Income-tax Act,1961 includes all those exemptions that a taxpayer can get while paying income tax.

What Are Exemptions Under Section 10?

Here is a list of exempted income under Section 10 :

Section 10(13A) of the Income Tax Act

Section 10(13A) of the Income Tax Act covers House Rent Allowance (HRA) . The part of your salary you receive to cover house rent and accommodation expenses is exempted from taxation.

However, a few exceptions are included in Section 10(13A) Rule 2A . The exemption is allowed for the least of the following amounts:

Actual HRA received
50% of [basic salary + DA] for those living in Delhi, Mumbai, Chennai, Kolkata or 40% of [basic salary + DA] for those living in other cities
Actual rent paid (-) 10% of [basic salary + DA]

Under Section 10(13A) of the Income Tax Act, the following types of expenses are covered under House Rent Allowance (HRA) for exemption from income tax:

Rent paid: The actual rent paid by the taxpayer for the residential accommodation they occupy.
Brokerage or commission: Any brokerage or commission paid to a real estate agent or broker for securing the rented accommodation.
Maintenance charges: Expenses incurred towards maintenance charges for the rented accommodation, such as society maintenance fees or charges for common fad
Lease agreement costs: Costs associated with preparing and registering the lease agreement, if applicable.

It is important to note that only expenses directly related to the rental accommodation occupied by the taxpayer are eligible for exemption under Section 10(13A) of the Act.

Let’s take a look at the below example.

An employee living in Mumbai with a basic salary of Rs. 40,000 per month, receiving an HRA of Rs. 20,000 per month, and paying rent of Rs. 15,000 per month.

Condition 1: Actual HRA received - Rs. 2,40,000 (Rs.20,000 per month)

Condition 2: Metro city 50% of [basic salary + DA] - Rs. 2,40,000 (50% of Rs.4,80,000)

Condition 3: Actual rent paid (-) 10% of (basic salary + DA) - Rs.1,32,000 (Rs.1,80,000 – Rs.48,000)

Least of the above is the amount of Exempted HRA - Rs. 1,32,000, HRA chargeable to tax - Rs. 1,08,000 (Rs. 2,40,000 - Rs.1,32,000).

Section 10(5) of the Income Tax Act

Section 10(5), or leave travel allowance exemption , is applicable for individual taxpayers. The LTA exemption applies only to the domestic travel expenses, such as airfare, train or bus fare, incurred by the employee. Other expenses, such as transportation within the destination, sightseeing, hotels, and food, are not covered. Additionally, the exemption is limited to LTA provided in your CTC by the employer. For example, if an employee is given LTA of Rs 30,000 and incurs travel expenses of Rs 20,000, only the amount actually spent on travel would be exempt from taxes and the remaining Rs 10,000 would be included as taxable income.

Section 10(26) of the Income Tax Act

If you are a member of a Scheduled Tribe in Tripura, Nagaland, Mizoram, Manipur, and Arunachal Pradesh, you are eligible for tax exemptions against income earning either from any source in the states mentioned above or earning through dividends or interest on securities under Section 10(26) Of the Income Tax Act.

Section 10(14)(i) of the Income Tax Act

This section provides exemptions for expenses incurred due to your employer’s business. It includes traveling, conveyance, research allowance and more, provided such expenses are actually spent for the given purposes.

Section 10(11) of the Income Tax Act

Under this section, you receive exemptions for interest from a provident fund upon resignation or retirement.

Section 10(34) of the Income Tax Act

This section includes exemptions from the dividends that you receive from investing in an Indian company. However, this exception is only limited to an amount of Rs.10,000, exceeding which you have to pay tax. This is applicable only for the dividends received till 31 st March 2020.

Section 10(26AAA) of the Income Tax Act

If you are a Sikkimese individual earning either from any source in Sikkim or earning through dividends or interest on securities, this part of your income comes under tax exemption under Section 10(26AAA).

Section 10(38) of the Income Tax Act

When you get long-term capital gains by selling equity shares of an equity-oriented mutual fund, it is exempted from Income Tax calculation. However, the Securities Transaction Tax must be paid. This is applicable only for the long term capital gain earned till 31 st March 2018.

Section 10(23C) of the Income Tax Act

Educational or medical institutions whose aggregate annual receipts do not exceed Rs.5 crore are eligible for exemption under this section.

Section 10(37) of the Income Tax Act

This section provides exemptions for capital gains due to the compulsory acquisition of urban agricultural land, provided the below conditions are fulfilled:

land should be used for agricultural purposes for 2 years before its sale date
compulsory acquisition scheme should be approved by central government or RBI

Section 10(10A) of the Income Tax Act

If you are a Government employee, under this section, you receive tax exemption on the money you get from accumulated pensions.

Section 10(10D) of the Income Tax Act

Under this section, you get an exemption for the income you receive from a life insurance policy or bonus. However, the below insurance policies shall not be eligible:

Life insurance policy has taken on a specially-abled dependent family member
Key man insurance policy
Insurance policies where the premium amount is more than 10% of the sum assured.

Section 10(35) of the Income Tax Act

Any income that you gain from the sale of specified mutual fund units. This is applicable only for the income earned till 31 st March 2020.

Section 10(10) of the Income Tax Act

Any income by way of gratuity received by the government, but in the case of employees working in the private sector, depends on whether they are covered under the Payment of Gratuity Act or not. Click here to know more

Internet allowance exemption under Section 10

Under Section 10(14), the Internet allowance provided by your employer is exempted from taxation.

Food allowance exemption under Section 10

Section 10(14) also includes a tax exemption of Rs.26,400 in a year for food allowance provided by your employer assuming two meals a day and 22 working days in a month.

How Do I Claim Section 10 Exemptions On My Taxes?

If you are wondering how to claim an exemption under Section 10 , you can do it by filing an income tax return. As the exemptions are income based, you must disclose the income earned and the corresponding exemption applicable.

Is Leave Encashment Exempted From Income Tax?

Leave encashment received at the time of their employment is fully taxable and forms part of ‘Income from Salary'.

However, if you are a government employee (State or Central), your income from leave encashment will not be taxable at the time of resignation or retirement.

Alternatively, if you are a private sector employee, the government will consider your income from leave encashment after resignation or retirement as ‘Income From Salary' and, thus, will be taxable. But, there will be exemptions under Section 10(10AA) of the Income Tax Act. There will be a tax on the amount remaining after exemptions according to your income tax slab.

Now that you are aware of Section 10 benefits , you can make use of them in order to get tax relief. However, consult a tax professional before filing a claim under this section.

Frequently Asked Questions

In order to be eligible for exemptions under Section 10(10D), you must have a life insurance policy; the value received upon its maturity, including the bonus component, can be claimed as an exemption.

No, Section 10(13A) of the Income Tax Act only provides exemptions for a part of the HRA, but it also has a few limitations. To know more, click here.

Section 10(10C) exempts the income received on voluntary retirement up to maximum amount of Rs.5 lakh.

Section 10(9) exempts the income of family members of foreign employees under the Cooperative Technical Assistance Program.

The amount received upon maturity of the Sukanya Samriddhi Account is exempt from tax without any limit.

The amount upto 60% of the value received from the NPS upon retirement or closure of the account shall be exempt from taxes and upon partial withdrawal upto 25% of the contribution made shall be exempt.

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Travel Expenses are Tax Deductible or Not: Here You Know

Published on February 21, 2022. EST READ TIME: 3 minutes

Under the Income-tax Act, 1961, there are a number of exemptions that are offered to salaried individuals. One of these exemptions is the Leave Travel Allowance. Travel benefit is one of the most common perquisites most private and public sector companies provide to their employees. It is a benefit that is provided to the employees to travel during their leave and there is tax exemption on the same as well. So, the next time you plan to take a trip, keep in mind that just like travel insurance , the benefit of LTA will make your travel smoother and more affordable.

However, it should be kept in mind that Leave Travel Allowance is not Transport Allowance. Transport Allowance is only used to reimburse an employee’s commuting expenses. Let us understand all you need to know about Leave Travel Allowance or LTA Benefit.

What is Leave Travel Allowance?

As the same suggests, Leave Travel Allowance is a benefit provided to cover travelling expenses during their leave from work. However, travel expenses only within the geographical boundaries of India are covered. No international travel is covered under LTA. The travel expenses under LTA are only covered under the Old Tax Regime of the Income Tax Act, 1961. While it may sound rather simple, there are many aspects that need to be kept in mind when claiming a tax deduction for LTA.

Let us first take a look at the conditions that are essential for claiming LTA

● The employee must be on leave to qualify for this exemption

● To claim the exemption an actual journey has to be made

● International travel cannot be covered under Leave Travel Allowance, only domestic travel

● The exemption can be claimed only by the employee individually or with his family (family includes the employer’s spouse, dependent children, dependent parents and dependent siblings)

● The exemption would not be available for over two children of an employee born after October 1, 1998

● To file this claim one has to provide all related bills & documents to back their claim amount

Eligibility to claim LTA:

Employees from public and private sectors can claim LTA benefits, regardless of when they started working. There is no such waiting period for an employee does not have to be eligible for LTA after joining a company. At the same time, the maximum covered amount under LTA is the sole decision by management. Also, if LTA is part of CTC, it must be included in the final settlement while leaving an organization.

With LTA, one can reduce travel expenses and tax benefits. It must be kept in mind that under LTA, only the travel costs are covered, which means the fare incurred over travel that could be air/ water or air. Expenses incurred on sightseeing, accommodation, local commuting etc are not eligible for this exemption.

How frequently may LTA be claimed as a tax deduction?

Only two journeys performed in a block of four calendar years can get exemption as an LTA. At the same time, the block year is decided by the government and different from the financial year. Also, LTA covers only within-country travel costs. The current block year begins in 2022 and extends until 2026. LTA allows individual taxpayers to claim tax exemption under Section 10(5).

Exclusions from LTA

Let's take a look at the exclusions from Leave Travel Allowance.

1. Travelling abroad isn't covered under the LTA exemption

2. The individual must keep proof of travel as it is required for tax auditing purposes.

3. After 1 October 1998, the exemption under Leave Travel Allowance is not available for more than two children.

4. LTA can only be claimed twice in a block of four calendar years.

If management disapproves of the request for LTA reimbursement, the tax deduction is a foregone conclusion.

What if the LTA is not claimed?

If any employee hasn't claimed their LTA, the deductible amount will be regularly taxed. Also, any remaining amount after-tax is credited into the individual's salary.

LTA to Cash Voucher Scheme

Due to the pandemic, the government came up with a leave travel concession (LTC) i.e. a cash voucher scheme. Under LTC, employees can claim a tax deduction under LTC by utilizing the money on the purchase of goods or services rather than submitting travel bills. According to government guidelines, employees will be eligible to claim a tax deduction equivalent to the LTC allowance up to ₹36,000 per person in the family or one-third of the amount spent. It should be noted here that the purchase of goods and services must be with a minimum of 12% GST, while only using digital methods to make payments. If the payment has been made in cash, the employee would not be able to make the tax exemption.

Procedure to Claim Leave Travel Allowance

The procedure to claim LTA is commonly organization specific. Every organization announces the due date within which employees can claim LTA. To claim the LTA, an organization may require employees to submit proof of travel such as tickets, boarding passes, invoices and bills during the journey. However, organizations don't need to collect evidence of travel, invoices and statements. Though it is always advisable for employees to keep copies for their records and submit them in case of requirement.

Getting tax benefits is always exciting. However, it is essential to know organizational policies regarding the Leave Travel Allowance. A basic understanding of LTA will help with tax benefits and cash purchases after the government cash voucher scheme.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

Different types of travel insurance

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What is Leave Travel Allowance? A Complete Guide
Post author: fincart
Post published: October 20, 2023
Post category: Income Tax

Table of Contents

We all like traveling these days, don’t we? Every year we all plan to make at least one trip. But little do we know that we could claim one of the allowances if provided by your employer. It could also help you to save taxes too! But how do you claim it? Can you claim it every year? How much amount does it cover? What is included in this? Is there an eligibility criterion to claim this allowance?

Tax deductions and exemptions provided by the Income Tax department have allowed us to save the most amount of tax possible. By using these exemptions, employers can structure employee Cost to Company (CTC) in a tax-efficient manner. Leave Travel Allowance (LTA) is an exemption available to salaried workers under the law that is also widely used by employers.

When planning travel to claim an LTA exemption, many factors need to be considered. LTA exemptions are governed by income tax provisions:

What is Leave Travel Allowance (LTA)?

Leave Travel Allowance (LTA) is an allowance provided by employers to employees who are on leave from work to cover their travel expenses. By the Income Tax Act, of 1; 961, LTAs are an important component of an employee’s salary, as they are eligible for income tax exemptions, making them a valuable tool for tax saving . LTA received by the employee during the year will not be included in his net income under Section 10(5) of the Income Tax Act.

Example of LTA

Assume that LTA granted by your employer is Rs 30,000, and the actual travel cost is Rs 20,000, then only Rs 20,000 will be available as an exemption and the balance of Rs 10,000 would be included in taxable salary.

Take another example, suppose the Leave Travel Allowance provided by the employer is Rs 25,000. The actual expenses spent on travel are Rs 30,000. Here, the LTA exemption allowed would be Rs 25,000 irrespective of a higher amount spent on travel.

Benefits of Leave Travel Allowance

1. Tax Exemption : LTA provides tax benefits as the amount spent on eligible travel expenses is exempt from income tax.

2. Family Inclusion : The allowance covers immediate family members, promoting family travel and bonding.

3. Domestic Exploration : Encourages employees to explore different parts of India, contributing to tourism and cultural exchange.

4. Reimbursement : Allows reimbursement of actual travel expenses or up to specified limits, easing financial burden on employees.

5. Employee Well-being : Promotes work-life balance by facilitating quality time with family during approved leave periods.

Conditions to claim Leave Travel Allowance exemption

The following conditions must be satisfied to claim an LTA exemption:

You can claim LTA for travel costs incurred for yourself and your family.
LTA can be claimed for any two years in a block of 4 years. The current block year for claiming LTA is 2022 to 2025.
The actual journey is a must to claim the exemption.
The exemption is available only on the actual travel costs i.e., the air, rail or bus fare incurred by the employee. Local conveyance, sightseeing, hotel accommodation, food, etc., are not eligible.
The exemption is also limited to LTA provided by the employer.
It applies to travel only within the country.

What is the eligibility for LTA exemption?

The LTA (Leave Travel Allowance) exemption for tax purposes is based on the actual travel cost. It covers expenses for a journey from the employee’s origin to the destination and back, using the shortest route by air, rail, or bus. Only the cost of travel tickets is eligible for exemption. Other expenses like conveyance, sightseeing, accommodation, shopping, and food are not allowed. If the employer’s LTA allowance is less than the actual travel cost, the exemption is limited to the employer’s provided amount.

Documents required for claiming LTA

To claim LTA, fill out the LTA application form supplied by your employer, including essential details like travel date, destination, mode of transport, and incurred costs. Alongside the application, submit supporting documents such as tickets, boarding passes, and invoices as evidence for your LTA claim. These documents are crucial to validate your travel expenses and support your application.

LTA Exemption Rules for Various Modes of Transport

The LTA claim depends on the mode of transport.

If travel is by air, the LTA limit is Actual Expenses or Economy class air fare of the national carrier by the shortest route to the place of destination, whichever is lower.
If travel is by rail, the LTA limit is Actual Expenses or first-class AC rail fare by the shortest route to the place of destination, whichever is lower.
If travel is by a recognized public transport system, the LTA limit is Actual Expenses or 1st class/ deluxe class fare by the shortest route to the place of destination, whichever is lower.
If no recognized public transport system is available, the LTA limit is Actual Expenses or first-class rail fare by the shortest route to the place of destination, whichever is lower. (It is assumed as if the journey had been performed by rail.)

How Much Leave Travel Allowance Exemption Will You Get?

There is a limit on how much LTA an employer may provide as an exemption. For instance, if Rs. 30,000 of LTA is granted by your employer and the actual travel cost incurred is Rs. 20,000 by an employee then the exemption will only be available till Rs. 20,000. Therefore the balance of Rs. 10,000 will be included in the taxable salary income. Procedure to Claim LTA

LTA claims are generally handled by employers. Employers announce the deadline for employees to claim LTA and may require employees to submit proof of travel along with the mandatory declaration, such as tickets, boarding passes, invoices from travel agents, etc. Although employers don’t need to collect proof of travel, it is always advisable for employees to keep copies for their records as well as to submit them to their employer on demand based on the LTA policy of the company.

What Happens to LTA If There is No Traveling Involved?

Because the LTA is part of your salary structure, it is automatically credited to your account regularly. If you do not travel or do not have a valid proof of travel, you cannot claim the LTA received for tax exemption purposes. Your net taxable income will be increased if you receive an LTA.

What expenses can be included under LTA?

Under the Income Tax Act, LTA (Leave Travel Allowance) can include the following expenses:

Travel Expenses : LTA encompasses the travel costs for the employee and their immediate family members (spouse, children, and dependent parents or siblings). The travel can be by air, rail, or public transportation, following the employer’s or Income Tax Department’s specified rules.

Destination : LTA is applicable for travel within India. Employees can claim expenses incurred on travel to any location in India during their leave period.

Mode of Travel : LTA covers expenses for travel by air, train, or other public transportation. Reimbursement is based on the actual amount spent or as per limits set by the employer or tax authorities.

Leave Period : LTA can be claimed for travel during the employee’s leave period, including annual leave, casual leave, or any other approved form of leave.

Unclaimed LTA

Unclaimed LTA is allowed to be carried forward. If an employee has not availed LTA exemption once or twice in a block of 4 years, he is allowed to carryover one exemption to the next block provided he avails this benefit, in the first calendar year of immediately succeeding block.

For example, during the 4-year block of 2014-2017, if you did not claim LTA or claimed it only once, then you will be allowed to carry forward one LTA to 2018 (first year of next block, i.e. 2018-21). Thus, from 2018 to 2021, you will be able to claim LTA three times.

Can Unclaimed LTA be Carried Over to the Next Block Year?

Under the carry-over concession rules, under which the employee can claim LTA tax breaks on three journeys made in the current block of years if he hasn’t claimed LTA in the last running block or has just claimed it once, the employee can still claim one additional LTA in the next block of calendar years. To utilize the carryover concession facility, one LTA exemption for the journey must be claimed during the first calendar year of the next block.

For instance, in the last block of the year, between 2018-2021, you made only one tax exemption claim under LTA as an employee. Therefore, you become eligible for LTA claims for up to 3 journeys in the current block, between 2022 and 2025. However, your first claim must be filed in the first calendar year of the current block, i.e. in 2022.

Also Read: Smart Tax Planning Strategies for High Earners

Leave travel allowance is an amount provided by the employer to the employee for Travelling while on Leave. This is a part of your salary which is exempted from tax.

Employees in India are generally eligible for LTA. To claim LTA, employees must undertake travel during their leave period, and the exemption is subject to specified conditions and limits set by the income tax regulations.

Under LTA, expenses related to travel within India are covered. This includes the cost of transportation by air, rail, or bus for the employee and eligible family members.

LTA can be claimed for two journeys in a block of four years and not on every financial year.

The concept of “block years” in the context of LTA (Leave Travel Allowance) refers to a four-year block set by the income tax authorities. This block consists of four consecutive calendar years, during which an employee is allowed to claim LTA for up to two trips.

No, LTA (Leave Travel Allowance) is specifically applicable for domestic travel within India.

For LTA exemption, the costs incurred for family members traveling with the employee are allowed. Family members include spouses, children, dependent parents, and dependent siblings.

The exemption can be claimed for up to two children if born on or after 1st October 1998.

LTA exemption is calculated as the least of the actual travel expenses incurred on a trip within India or the fare of the equivalent journey by the shortest route in the chosen mode of transportation (air, rail, or bus). Again, it is limited to the LTA component in your compensation package or CTC.

If an employee doesn’t travel at all or lacks valid proof of travel, they cannot claim LTA for tax exemption purposes. In such a scenario, the received LTA amount is treated as a part of the employee’s taxable income.

If an employee does not fully utilize their LTA entitlement in a particular block of four years, it can be carried over to the next block. But the employee is usually required to utilize this carryover LTA in the first calendar year of the immediately succeeding block.

If the unutilized LTA is not claimed within the first year of the next block, it will expire and would not be allowed to be claimed later on.

Yes, there is a specific deadline for employees to claim LTA. Usually, LTA can be claimed for exemption twice under the block of 4 years.

No, LTA (Leave Travel Allowance) is specifically designed for personal travel during leave periods and cannot be claimed for business trips or official travel.

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Credits and deductions
Business expenses

Can I deduct travel expenses?

If you’re self-employed or own a business , you can deduct work-related travel expenses, including vehicles, airfare, lodging, and meals. The expenses must be ordinary and necessary.

For vehicle expenses, you can choose between the standard mileage rate or the actual cost method where you track what you paid for gas and maintenance.

You can generally only claim 50% of the cost of your meals while on business-related travel away from your tax home, provided your trip requires an overnight stay. You can also deduct 50% of the cost of meals for entertaining clients (regardless of location), but due to the Tax Cuts and Jobs Act of 2017 (TCJA), you can no longer deduct entertainment expenses in tax years 2018 through 2025. In 2021 and 2022, the law allows a deduction for 100% of your cost of food and beverages that are provided by a restaurant, instead of the usual 50% deduction.

On the other hand, employees can no longer deduct out-of-pocket travel costs in tax years 2018 through 2025 per the TCJA (this does not apply to Armed Forces reservists, qualified performing artists, fee-basis state or local government officials, and employees with impairment-related work expenses). Prior to the tax rule change, employees could claim 50% of the cost of unreimbursed meals while on business-related travel away from their tax home if the trip required an overnight stay, as well as other unreimbursed job-related travel costs. These expenses were handled as a 2% miscellaneous itemized deduction.

Related Information:

Can I deduct medical mileage and travel?
Can I deduct my moving expenses?
Can I deduct rent?
Can I deduct mileage?
Can employees deduct commuting expenses like gas, mileage, fares, and tolls?

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Transport & Conveyance Allowance - Taxability & Exemptions

Bharti Vasvani

The basic salary is the main component of an employee’s salary structure. Apart from that, employers provide many allowances such as HRA, LTA, transport allowance, conveyance allowance etc. Here is a guide which explains the difference between conveyance allowance and transport allowance and the corresponding rules to claim exemption.

What is the meaning of Conveyance Allowance and Transport Allowance?

Limit for transport allowance exemption, update in the finance act, 2019, limit for conveyance allowance exemption, exemption criteria under the new tax regime.

A transport allowance u/s 10(14) of the income tax act is paid to employees to meet the cost of the daily commute from home to work and vice versa or for personal expenditure in case of employees in the Transport business provided they are not in receipt of the daily allowance. A conveyance allowance u/s 10(45) of the income tax act is an allowance offered to taxpayers who receive income from salary to meet the cost of transportation in the course of official work. Usually, it is provided to employees only if the employer provides no transportation service.

Section 10(14) with Rule 2BB provides conditions for transport allowance exemption. The following table explains the amount of exemption:

Up until FY 2014-15, the exemption limit on transport allowance was Rs. 800 per month (INR 9600 per annum). But the limit was enhanced to Rs. 1600 per annum in Budget 2015. This step was taken to provide a tax benefit to middle-class commuters in the country.

Finance Act, 2018 introduced a standard deduction of INR 40,000 which was revised to INR 50,000 in Finance Act, 2019 in lieu of a transport allowance of INR 1600 per month and a medical allowance of INR 15,000. This change shall take effect from the financial year 2019-20 and accordingly, no separate transport allowance of INR 1,600 per month is available to employees other than physically challenged employees and employees of a transport business.

Let’s understand with an example:

There is no limit on the amount of conveyance a company can provide to its employee. As per the income tax act, the conveyance allowance exemption is allowed to an employee to the extent of expenditure actually incurred for official purposes.

Because of such exemption conditions, companies usually provide this allowance on a reimbursement basis. So if an employee incurs any transportation expenses out of pocket for official purposes, the company will reimburse the same amount to him upon submission of proof of expense.

Starting from FY 2020-21, the government provides taxpayers with the option to choose from the new tax regime for individual and HUF taxpayers. Under the new tax regime, there are flat tax rates and no deductions or exemptions. Also, the individual cannot claim deductions for any tax-saving investments. However, the new tax regime allows an individual to claim the following tax-exempt allowances:

Allowance by the employer to meet the cost of travel on tour or transfer. It includes an allowance for the cost of travel such as airfare, rail fare, and other transportation costs.
Any allowance by the employer to meet the ordinary daily charges incurred by an employee on account of absence from the usual place of duty. The allowance should be in respect of the tour or for the period of the journey in connection with a transfer. The allowance includes expenses an employee incurs for food and other daily costs while travelling.
Allowance to meet conveyance expense incurred while performing duties of an office or employment of profit. However, in this case, the employer should not provide a free conveyance to the employee. The allowance includes travelling expenses an employee incurs while performing official duties.

A conveyance allowance is provided to meet transportation expenses in the course of official work. Whereas transport allowance can be claimed for expenses related to commuting between home and work.

This allowance is completely exempt from tax. However, Transport allowance up to INR 1600 per month or INR 19,200 per year was being claimed as an exemption up to FY 2017-18. From FY 2018-19 it was replaced by a standard deduction.

Yes, you can claim actual expenses reimbursed for relocation as exempt by providing proof or invoices for such expenses.

Got Questions? Ask Away!

Hey @sushil_verma

There are a wide range of deductions that you can claim. Apart from Section 80C tax deductions, you could claim deductions up to INR 25,000 (INR 50,000 for Senior Citizens ) buying Mediclaim u/s 80D. You can claim a deduction of INR 50,000 on home loan interest under Section 80EE.

Hey @Dia_malhotra , there are many deductions that you can avail of. Your salary package may include different allowances like House Rent Allowance (HRA) , conveyance , transport allowance, medical reimbursement , etc. Additionally, some of these allowances are exempt up to a certain limit under section 10 of the Income Tax Act.

Medical allowance is exempt up to INR 15,000 on a reimbursement basis.
Children education allowance is exempt up to Rs. 200 per child per month up to a maximum of two children.
Conveyance allowance is exempt up to a maximum of Rs. 1600 per month.

Tax on employment and entertainment allowance will also be allowed as a deduction from the salary income. Employment tax is deducted from your salary by your employer and then it is deposited to the state government.

The benefit Section 80EEB can be claimed by individuals only. An individual taxpayer can claim interest on loan of an electric vehicle of up to INR 1.5 lacs u/s 80EEB. However, if the electric vehicle is used for the purpose of business, the vehicle should be reported as an asset, loan should be reported as a liability and the interest on loan can be claimed as a business expense irrespective of the amount. (We have updated the article with the changes).

Thus, if you have a proprietorship business, you should claim interest amount as a business expense only if the vehicle is used for business purpose. However, if it is used for personal purpose, you can claim deduction of interest u/s 80EEB in your ITR since you would be reporting both personal and business income in the ITR (under your PAN).

As per the Income Tax Act, the deduction under Section 80EEB is applicable from 1st April 2020 i.e. FY 2020-21.

No issues. You’re welcome!

Hey @shindeonkar95

In case of capital gain income (LTCG/STCG), transfer expenses are allowed as deduction, except STT.

However, in case of business income (F&O, intraday), all expenses incurred for the business (including STT) are eligible to claim deduction in ITR.

Hope, it helps!

Is it possible to claim deductions under S. 80CCF for Infra bonds bought in the secondary market and held to maturity?

There were a number of 10 year infra bonds issued in the 2010- 2013 period, which will start maturing soon. These are all listed on the exchanges (although hardly any liquidity or transactions in them). If I were to buy some of these bonds in the open markets and hold them in my demat to maturity (<3 years), is it possible to claim tax deductions (upto 20k per year) under 80CCF for buying?

I couldn’t find anything on this. Any help is appreciated.

Hello @Veejayy ,

Yes you can claim deduction under 80CCF for investment made in specified infrastructure and other tax saving bonds bought in the secondary market and held to maturity.

Deduction under Section 80CCF can be availed only through investment in certain tax saving bonds, issued by banks or corporations after gaining permission from the government which shall be restricted upto 10,000 per year.

These bonds are generally long term bonds, having tenure of more than 5 years with a lock in period of 5 years in most of the cases. These bonds can be sold after the lock in period!

Also, interest earned on these bonds will be taxable.

Hope this helps!

Hi, I need to file my income tax for FY21, I am using Quicko platform for filing, I wanted to confirm if the ELSS investment amount for the FY21 is to be added in the section 80C, since I already the amount of Rs30,072 , should I add my ELSS amount to this existing amount and submit the total

Hey @Sheirsh_Saxena , yes, the investment amount needs to be added under 80C.

Continue the conversation on TaxQ&A

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Last Updated on 1 year by Bharti Vasvani

Are Travel Expenses Tax Deductible?

TATA AIG Team
Published on :

Salaried employees are eligible for several tax exemptions under the Income-tax Act of 1961. One of these exemptions is a leave travel allowance or LTA. Travel benefits are among the most common benefits private and public sector companies offer their employees.

Employees get a leave travel allowance for travel expenses and get a tax exemption up to a certain limit under Section 10(5) of the Income Tax Act. That only reimburses an employee's commuting expenses. This is not the same as the transport allowance exemption limit for salaried employees, which is ₹1,600 per month or ₹19,200 per annum (as on March 2023).

So if you are wondering, "Is travel allowance taxable?", the answer is that you can deduct LTA from your taxable income as an exemption. However, only the amount of travel expenses you spend can be claimed under an exemption and not the amount you receive from your organisation/employer.

What Is Leave Travel Allowance?

Employees get a leave travel allowance as a benefit from their employers. It covers any expenses related to travel. However, only the expenses incurred when travelling anywhere within India are covered as tax deductibles.

Your travelling allowance exemption is the allowance paid by your employer to cover your travelling expenses while travelling during your leave, with or without your family. Your LTA is included as a part of your CTC and is given as a yearly benefit, but it can also be used monthly.

You can use your LTA from your employer or ex-employer (if you're retired) to

Cover the expenses incurred while travelling during your leave from work.
Cover the costs incurred when travelling after your retirement or termination of services.

Furthermore, combining your LTA exemption in income tax and the benefits of a travel insurance plan can save you money in the long run. In contrast, when travelling overseas, an international travel insurance plan can help cover any emergency medical expenses that may arise during your trip.

Claiming An LTA Exemption In Income Tax

Employees working in public or private sectors can claim a travel allowance income tax exemption under Section 10, 14(i) of the Income Tax Act of 1961.

This section states that "an allowance received by the employee that is given to meet expenses totally and necessary for the performance of official duties (generally called 'Per Diems'), for the expenses that he has already/has to incur, are exempted from taxes."

In simple terms, the exclusion is offered based on the total amount of the allowance and the amount used by the employee during travel.

For example, if the LTA granted by the employer is ₹30,000, and the travel cost incurred is ₹20,000. The exemption would only be for the ₹20,000. The remaining ₹10,000 would be considered taxable salary income.

The procedure itself is specific to the employee's organisation. Every company has its own due dates, and to claim an LTA exemption, the employee may be requested to submit proof of travel. This can include invoices and bills incurred for the trip. Not all organisations will request proof of travel, but it's best to keep and maintain a proper paper trail just in case.

Who Is Eligible To Claim An LTA Exemption In Income Tax?

The travel tax exemption is covered under the Old Tax Regime of the Income Tax Act of 1961. It may sound simple enough, but there are a few things to keep in mind when claiming a deduction:

The employee must be on leave to qualify for LTA exemption in income tax.
The exemption does not include the amount spent on hotel accommodation, shopping, or food. It only covers the travelling expenses.
International travel is not included under the travelling allowance exemption.
The exemption can be claimed only by the individual employee alone or with their family (spouse, children, parents, and in-laws).
This exemption is unavailable for employees with more than two children born after 1st October, 1998.
Employees can only claim the exemption by providing documentary proof of their expenses, such as tickets, boarding passes, etc., and a prescribed declaration form.

How Frequently Can Someone Claim A Travelling Allowance Exemption?

An employee can claim an LTA expense exemption for only two journeys during a block of four calendar years. The government decides the block year (two years starting 1st January of an even year to 31st December of an odd year), and this is different from the financial year.

Here's a closer look at how these exemptions are granted based on the mode of travel:

A leave travel allowance is a benefit afforded to employees by their companies. Employees are eligible for tax exemptions for their travel expenses under Section 10, 14(i) of the Income Tax Act of 1961, provided they fulfil certain conditions.

Lastly, this exemption is only applicable for travel expenses incurred when travelling within the borders of India. A leave travel allowance and transport allowance are not the same. When travelling to another city, you need to have a travel insurance plan with you that will secure you against emergencies. Tata AIG offers a range of domestic as well as international travel insurance plans at reasonable premiums that you can calculate on the official website.

Domestic travel insurance plans allow you to safeguard your trip from unforeseen risks so that you can have a safe journey. When you want to file a travel insurance claim with us from anywhere in India, you can swift assistance with any issues you may face during your travels!

Frequently Asked Questions (FAQs)

1.How do you claim an exemption if you travel to multiple places?

Suppose you travel to different places during a single vacation. In that case, the LTA exemption covers the travel cost from the starting destination to the farthest destination through the shortest available route.

2. Are there LTA exemptions for travel on public holidays?

Most organisations follow the details of the income tax provisions down to the last letter. So, they may reject LTA claims for travel expenses incurred during official holidays or weekends.

3. What happens if an employee does not make use of their LTA?

If an employee does not use their LTA exemption for one or two journeys within the block of four years, they can carry it over to the following year's block, provided they use this benefit within the first year of the next block.

Travel Insurance

Car insurance, health insurance.

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Disclaimer / TnC

Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.

Why senior citizens travel insurance is must?

Going for a vacation. Here are five reasons you need travel insurance

5 Myths of Travel Insurance

Tata aig also offers insurance for the below products, two wheeler insurance.

Insurance is the subject matter of the solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure / policy wording carefully before concluding a sale. Trade logo displayed above belongs to TATA Sons Private Limited and AIG and used by TATA AIG General Insurance Company Limited under License. 2008, TATA AIG General Insurance Company Limited, all rights reserved. Registered Office : Peninsula Business Park, Tower A, 15th Floor, G.K.Marg, Lower Parel, Mumbai - 400 013, Maharashtra, India. CIN: U85110MH2000PLC128425. IRDA of India Regn. No. 108. Toll Free Number : 1800 266 7780 / 1800 22 9966 (only for senior citizen policy holders). Email Id – [email protected] . Category of Certificate of Registration: General Insurance.

2008, Tata AIG General Insurance Company Limited, all rights reserved. Registered Office : Peninsula Business Park, Tower A, 15th Floor, G.K.Marg, Lower Parel, Mumbai - 400 013, Maharashtra, India. CINNumber : U85110MH2000PLC128425. Registered with IRDA of India Regn. No. 108. Insurance is the subject matter of the solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure / policy wording carefully before concluding a sale. Trade logo displayed above belongs to Tata Sons Private Limited and AIG and used by TATA AIG General Insurance Company Limited under License. Toll Free Number : 1800 266 7780 / 1800 22 9966 (only for senior citizen policy holders). Email Id – [email protected] .

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Union Budget 2024

Allowances / Exemptions Under Income Tax Act, 1961

Income-tax Act contains provisions for taxability of various allowances received by a taxpayer. These allowances are either in the nature of income which is exempt from tax or is an expenditure which provides weighted deductions to the taxpayer.

Taxpayers are normally aware of deduction under the Income Tax Act, 1961 for which they are eligible but it is noticed that taxpayers are found unaware of Taxability of Various Allowances and exemptions available to them under different sources of Income i.e. Salary , Business Income, House property other sources etc.

In this article an effort has been made to Summarise Allowances /exemptions available to different categories of Tax Payers under Various sources of Income. This list gives a glimpse of tax treatment of various allowances available to a taxpayer.

Page Contents

A. Under the head Salaries

B. under the head income from house property, c. under the head profits and gains from business or profession, d. under the head capital gain, e. under the head income from other sources, income tax allowances available to different categories of tax payers [ay 2024-25], capital gain account scheme 1988.

a) The scheme is open to all taxpayers, who wish to claim exemption under Sections 54, 54B, 54D, 54F, 54Gor 54GB.

b) If taxpayer could not invest the capital gains to acquire new asset before due date of furnishing of return, the capital gains can be deposited before due date for furnishing of return of income in deposit account in any branch of a nationalized bank in accordance with Capital Gain Account Scheme 1988.

c) w.e.f. Assessment Year 2024-25, if the capital gains deposited in the Capital Gains Scheme Account (CGSA) exceed Rs. 10 crores, the excess amount shall not be taken into account while computing capital gain exemption under section 54.

d) w.e.f. Assessment Year 2024-25, where the net consideration deposited in the CGSA exceeds Rs. 10 crores, the excess amount shall not be taken into account while computing capital gain exemption under section 54F

[As amended by Finance Act, 2023]

(Republished with Amendment, Source -Income Tax Website)

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40 Comments

Sir Allowance termed as “FIRE FIGHTING allowance” can it be exempted under any section under income tax pl. clarify Regards ABHAY KUMAR SINGH

Kindly intimate, how many %age for exemption in Risk and hard ship allowances.

Sir Allowance termed as “Telephone allowance” can it be exempted under any section under income tax if proper bills or document proof is submitted ? pl. clarify Regards Raghuram R

What is the maximum limit for washing allowance to give high skilled employees?? our employee’s salary are 23000 to 28000 gross and we want to deduct ESIC, but max cab is 21000 than, is it possible to deduct esic from their salary ?? i need your legal and professional advice.

My wife receives uniform allowance and bauf( body and uniform) allowance both separately Please guide me a its tax treatment.

Academic Allowance Rs-22500/-p.m. & Learning Resource Allowace Rs.1,50000/-p.a. comes in tax exemption or not?

I purchased an old flat recently. I am a housewife having income from fishpond. The fish ponds leased. Kindly clarify 1. Is the income on fish ponds exempted from I income tax. 2. Is the expenditure on repairs and maintenance exempted from income tax . If so details please

is flying allowance/risk allowance paid to pilots/submariners/divers in navy taxable

Hi I am an employee in a private organization. This year my organization has deducted a security deposit equal to the salary of two months. My quiry is that am I liable to pay TDS on the salary of two months which is lying as security deposit with my employer or I have to pay TDS on the salary of 10 months which is actually I am getting this financial year.

Dear Sir, Please suggest

*arrears of counter insurgency allowance under section 10(14)ii is fully taxable or taxable with some exemption. if exemption is available then how to claim that exemption. Regards Deepak Chauhan

Kindly let me know if pilotage amount received by a navigation officer in Indian Navy (Central govt) , is taxable? As it’s not a monthly salary but a kind of an allowance received by navigation officer for sailing.. Kindly confirm, please

Please, confirm, whether Ration Money allowance paid to CAPF personnel in lieu of free ration are taxable or not. if not kindly attache order copy.

Conveyance allowance for the assessment year 2020-21 exempted or not for salaried employed

THIS CONTENT IS VERY USEABLE FOR IT CALCULATION IN INDIVIDUALS OF INDIA AND ABROAD THANKS FOR YOUR BEST WORK WITH WARM REGARDS

Army Personals will get Ration money monthly 3300/- will it be exempted fully from income tax? if yes under which section ? please clarify the same.

under what provisions of law

3. – Compensatory allowance received by a Judge under article 222(2) of the Constitution Fully Exempt Individual – Judges

I need legal provisions regarding it

FY 18-19 HOW MUCH AMOUNT DEDUCTED FOR THE MANIPUR STATE FOR THE BELOW MENTIONED ITEAMS 1) COMPENSATORY MODIFIED FIELD AREA ALLOWANCE 2) PROJECT ALLOWANCE 3) CONVEYANCE EXEMPTION please send me the details

chhattisgarh State Power Company me conveyance/compensatory allowance milta hai. jisme tax lagela ya nahi. please reply

Please let me know if munsif judge can deduct the conveyance allowance and sanctuary allowance from income tax calculation.

is monthly maintenance allowance directly deducted and diverted by the employer (army authorities) from monthly salary of husband (army personnel) and paid to his wife, exempted from deduction of tax in respect of husband and if yes, under which provisions/act/section of law. please reply urgently.

Sir, I would like to know regading the exemptions under NPS Tax Benefits and sections 80CCD(1), 80CCD(2) and 80CCD(1B)

1.If i have a total nps contribution of Rs 80000,and LIC Rs.60000,PPf :Rs.50000 i.e. total is RS 190000 and exxemption under 80 C :-150000,then the rest Rs.40000 can be shown in 80CCD(1B) or not

or 80CCD(1B) will only consider the voluntary contribution by the employee upto Rs 50000.

2.What is the exemption for TA & SDA & HCA for the A.Y.2018-19

I am a govt. employee and drawing ration money allowance. Is ration money allowance exempted from income tax. If yes under which section?

I am a salaried person and get Rs. 30000/- PA as conveyance allowance. Distance of my office to home is 20 KM approx. Thus my annual expenditure on conveyance is Rs.40000 to Rs.45000. Is above conveyance allowance exempt from income tax ?

any judges is exeption sumpatory allowance and medical allowance and Compensatory allowance and surrender leave and additional pay please clearified

Whether exemptor not the property tax deposited In municipal committee

How can I get tax exemption on mess/food money. Say which rules& clauses.

How can I get tax exemption on mess/food money. Mentioned the tax rules& clauses

I have a query I get fixed allowance of Rs 800 per month towards news papers etc. I work in Bank. To keep my self abrest with happenings in Financial Sector, I need to read news papers. I purchase news papers worth 500/- every month. Can I decuct/ claim expenses for the news papers purchased. If yes, how Can I do It?

I have a will from my father. based on the will i got my name endorsed in Water, electricity and MCD records. HOw this property is taxed or to be declared?

Sir, I am grateful to you bringing out a comprehensive article . But whether are any exemptions available for pensioners?

CAN I GET THE EXEMPTION OF Distinguish SEWA AWARD IF I GET A CASH INCENTIVE FROM MY EMPLOYER FOR SPECIFIC SEWA KINDLY SUGGEST ME BETTER VIkrant bhardwaj

If a person is not being paid any LTA, can IT exemption be claimed for the expenditure incurred by him from his own take home pay to travel on a holiday?

Can a salaried person claim exemption of Transport Allowance as well as Conveyance Allowance for the Assessment year 2017-18

It is requested to I am working in Anti Corruption Bureau, Telangana I am receiving special pay 30% of basic pay, this special pay is taxable or exempted as per the Income Tax ACt.

I was sponsored by Company A for a academic program under a 2 year bond, now i want to join company B which is ready to pay this amount to me so that i can return to company A. Company B is deducting TDS on the payout and not treating it as reimbursement under Section 10 Rule 2BB since the fee was paid to the institute directly by company A.

What are the conditions to avail the above clause, can this be transferred from old employer to new employer.

Please guide me in this case.

Please let me know if Government Engg colleges and polytechnics are exempted from the Income tax.

came to know that military service pay is non taxable.. is it true ..comment please

pls send me details about exemption for veterinary product under vat, ST, and income tax act if any

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COMMENTS

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SOLVED • by TurboTax • 5278 • Updated November 30, 2023. If you're self-employed or own a business, you can deduct work-related travel expenses, including vehicles, airfare, lodging, and meals. The expenses must be ordinary and necessary. For vehicle expenses, you can choose between the standard mileage rate or the actual cost method ...
Conveyance Allowance & Transport Allowance
The allowance includes travelling expenses an employee incurs while performing official duties. FAQs. What is the difference between Conveyance and Transport Allowance? ... As per the Income Tax Act, the deduction under Section 80EEB is applicable from 1st April 2020 i.e. FY 2020-21. Maharshi_Shah says: 01/07/2021.
PDF Deductions/Allowances allowed to a salaried employee
Income-tax Act allows three deductions from the salary income, i.e., Standard Deduction, Deduction for Entertainment Allowance, and Deduction for Professional Tax. Standard Deduction is allowed to every employee whose income is taxable under the head salary. In contrast, the other two deductions are allowed subject to certain conditions.
Travelling And Daily Allowances fully Exempted From Income Tax
In accordance Rule 2BB of in IT Rules, 1962, any allowance (by whatever name called) granted to meet the cost of travel or tour or on transfer is completely exempted from tax in the employee's hands. For the purposes of this clause "allowances granted to meet the cost of travel or transfer" include any sum paid in connection with the ...
Are Travel Expenses Tax Deductible?
Employees are eligible for tax exemptions for their travel expenses under Section 10, 14 (i) of the Income Tax Act of 1961, provided they fulfil certain conditions. Lastly, this exemption is only applicable for travel expenses incurred when travelling within the borders of India. A leave travel allowance and transport allowance are not the same.
Allowances / Exemptions Under Income Tax Act, 1961
16 (ii) Entertainment Allowance received by the Government employees (Fully taxable in case of other employees) Least of the following is exempt from tax: a) Rs 5,000. b) 1/5th of salary (excluding any allowance, benefits or other perquisite) c) Actual entertainment allowance received. Individual - Government Employee.
State Legislators: Tax Reform Eliminates Deduction for Travel Expenses
Historic tax reform was passed by Congress in the Tax Cuts and Jobs Act on Dec. 22, 2017. The IRS is working to educate taxpayers about important changes included in this legislation. One change significant for certain state legislators is the suspension of miscellaneous itemized deductions, which include unreimbursed travel expenses.

Tax Deductions for Business Travelers

Ordinary vs. necessary expenses

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What Are Travel Expenses?

Travel Expenses Definition and Tax Deductible Categories

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Types of Travel Expenses

Can I Deduct My Business Travel Expenses?

Do I Need Receipts for Travel Expenses?

What Are Reasonable Travel Expenses?

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Section 10 Of Income Tax Act: Exemptions, Allowances & How To Claim It?

What Is Section 10 Of Income Tax Act?

What Are Exemptions Under Section 10?

Section 10(13A) of the Income Tax Act

Section 10(5) of the Income Tax Act

Section 10(26) of the Income Tax Act

Section 10(14)(i) of the Income Tax Act

Section 10(11) of the Income Tax Act

Section 10(34) of the Income Tax Act

Section 10(26AAA) of the Income Tax Act

Section 10(38) of the Income Tax Act

Section 10(23C) of the Income Tax Act

Section 10(37) of the Income Tax Act

Section 10(10A) of the Income Tax Act

Section 10(10D) of the Income Tax Act

Section 10(35) of the Income Tax Act

Section 10(10) of the Income Tax Act

Internet allowance exemption under Section 10

Food allowance exemption under Section 10

How Do I Claim Section 10 Exemptions On My Taxes?

Is Leave Encashment Exempted From Income Tax?

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Travel Expenses are Tax Deductible or Not: Here You Know

What is Leave Travel Allowance?

Eligibility to claim LTA:

How frequently may LTA be claimed as a tax deduction?

Exclusions from LTA

What if the LTA is not claimed?

LTA to Cash Voucher Scheme

Procedure to Claim Leave Travel Allowance

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