What is the current block year for LTA?

List of block years are 1986-1989, 1990-93, 1994-97, 1998-2001, 2002-05, 2006-09, 2010-13 and so on. The block applicable for the current period is the calendar year 2018-21. The previous block was the calendar year 2014-17.

How is LTA block calculated?

Block year comprises of a batch of 4 years each. The first block year started in the year 1986. The list of block years has since been 1986 to 1989, 1990 to 93, 1994 to 97, 1998 to 2001, 2002 to 05, 2006 to 09, 2010 to 13 and so on. The current running block year is from the period of year 2018 to 2021.

What is the maximum limit of LTA?

The exemption should not exceed Rs 36,000 per person or 1/3rd of the ‘specified expenditure’, whichever is lower. Payment for the expenses should have been made via electronic means to a business registered under GST and a ‘GST tax invoice’ should be available.

How many leaves are required for LTA?

Calculation of Leave Travel Allowance An employee can make LTA claim for two journeys in a block of four years.

Can I claim 2 LTA a year?

Can I Claim LTA Twice in a Year – Though you can claim two journeys in a block of four years, you can claim the LTA benefit just once in a year. You cannot claim both the journeys in one year.

Can I claim LTA for previous block?

If the employee has not claimed LTA in the last running block or just claimed it for once, he can still claim one additional LTA in the next block of calendar years under the carry over concession rules under which the employee can claim LTA tax-breaks on 3 journeys made in the current block of years.

What happens if I dont claim LTA?

How do I avoid LTA tax?

Some pensions allow you to build up benefits on a reduced part (known as 50:50). A common strategy is to withdraw tax-free cash from the pension. This leaves fewer funds in the pension to grow, reducing the potential second LTA charge at age 75.

Can I claim LTA without travelling?

In October 2020, due to the covid-19 pandemic, the government announced an LTC cash voucher scheme that allowed salaried taxpayers eligible for LTC/LTA to claim the allowance tax exempt without travelling by purchasing goods and services as per the scheme’s conditions.

Can LTA be claimed in 2 consecutive years?

The current block of four years covers the calendar years 2018, 2019, 2020 and 2021. Since both these calendar years 2020 and 2021 fall in the same block, you can claim the exemption for both these consecutive calendar years in case you have not claimed the LTA exemption for 2018 and 2019.

Can I claim LTA without leave?

The current running block for claiming LTA is calendar years 2018-2021. The last running block was 2014-17.As the LTA can only be claimed when the employee has been on leave from work for travelling purposes, the employee should mark that period as ‘leave’.

Can I claim LTA twice in a year?

Can I Claim LTA Twice in a Year. Though you can claim two journeys in a block of four years, you can claim the LTA benefit just once in a year. You cannot claim both the journeys in one year.