How much lta is taxed

Presently, the block of is going on. Income Tax Department makes these blocks. The exemption if remains unclaimed can be carried forward to next year. The LTA rules for exemption are as follows:.

By continuing to use the site, you are accepting the bank's privacy policy. Select Different Product Investments. No international trips are considered. LTA Exemption is not allowed if it is encashed by the employee without going on any journey. Honouring Exemplary Boards. Deep Dive Into Cryptocurrency. ET Markets Conclave — Cryptocurrency. Reshape Tomorrow Tomorrow is different. Let's reshape it today. Corning Gorilla Glass TougherTogether.

ET India Inc. ET Engage. ET Secure IT. Tax How to file ITR. Tax Saving. ITR Forms. Income Tax Refund. Tax Exemption Limit. Income Tax Slabs. Insure Life Insurance. Health Insurance. Motor Insurance. Other Risk Covers. For air travel: Amount of exemption cannot be more than the economy class airfare of Air India on the route.

For travel by other means of transport: An amount equal to the AC first class rail fare is allowed as exemption. For LTA calculation , the fares of spouse, kids, dependent parents and siblings are also considered. The exemption is however limited to only two children born after October 1, As an employee, you can claim LTA exemption only for two journeys in a block of four years. The block applicable for the current period that began in January and ends in December If you missed out on claiming two tax exemptions during the last block of , then you can carry over one journey to the new block that began from In this way, you can get a maximum of three tax exemptions on LTA in a block of four years.

But according to Income Tax rules, carry forward is allowed only when you make a claim in the first year of the block. Never miss a story!