Saturday, December 8, 2012

Tax Exemption on LFC

Tax Exemption on Leave Travel Allowance

Your article in the Hindu BL on 25.11.2012 - Regarding
Thank you very much for the educative article on Tax Exemption on LTA. Madam, I would like to know the tax exemption provision for the yearly home town LTA being given to persons posted to North Eastern States, Andaman & Nicobar, Lakshadweep or Sikkim and for first 8 years for fresh recruits in the Government.
I understand that the amount of investment vis-à-vis employment generated is high in “Tourism” and to encourage Tourism taking into account the employment generating potential, the government can consider higher tax exemption without restricting the same to expenses on travel per se, i.e., to cover expenses on stay, food, sight-seeing, and so on. The Hon’ble Finance Minister can consider additional amount depending on the number of persons travelled on LTA. I am confident that an article on these lines in Business Line will bring desired response in the ensuing budget.
With regards,
Vijayasenan. P
L6 Lotus Colony
Chennai 600035

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