[msdivy]

Originally Posted by sunilsreenivasg

1/3rd of the total amount spent is exempted from tax, provided you have the LTA amount defined in your CTC.

I am eligible for LTA amount of 'X', but I have defined 'Y' as LTA in the CTC. Y is 10% of X.

Which is taken as LTA component, X or Y for this voucher scheme?

[sunilsreenivasg]

Originally Posted by msdivy

I am eligible for LTA amount of 'X', but I have defined 'Y' as LTA in the CTC. Y is 10% of X.

Which is taken as LTA component, X or Y for this voucher scheme?

Whatever you have spent. . Your spent amount(Z) should be within Y limits. On Z, only 1/3rd is exempted from tax.
For example, X is 100000, Y is 10000. Then you are eligible to claim 10000. For that full claim, you might need a bill of ₹30000.

This is how, it happened in my case. Any other views are welcome

[venkikewl]

Say for example, if i opted to buy a 2 wheeler worth 2.3L OR price & have paid 70k in cash & rest using finance. I get a regular invoice slip of the total cost of the bike from showroom right. So in this case, can i claim LTA for the entire 2.3L or only on the cash paid which is 70K.

Any information would be helpful as our company's deadline to submit bills is 2nd of March, so I have time to finalize & purchase a bike if its feasible.

Thanks

[fordday]

Originally Posted by venkikewl

Say for example, if i opted to buy a 2 wheeler worth 2.3L OR price & have paid 70k in cash & rest using finance. I get a regular invoice slip of the total cost of the bike from showroom right. So in this case, can i claim LTA for the entire 2.3L or only on the cash paid which is 70K.

It depends on how much amount you have declared as LTA to the company, at the beginning of the FY.

e.g. I have declared 50K. If I want full benefit, I need to spend 1.5L.

If you have not declared any amount, you will not able to claim from the company. Then you may be able to claim while filing IT returns.
To claim 2.3L for LTA, you should have declared 2.3/3=76K as LTA.

[venkikewl]

It depends on how much amount you have declared as LTA to the company, at the beginning of the FY.

e.g. I have declared 50K. If I want full benefit, I need to spend 1.5L.

If you have not declared any amount, you will not able to claim from the company. Then you may be able to claim while filing IT returns.

Originally Posted by fordday

To claim 2.3L for LTA, you should have declared 2.3/3=76K as LTA.

This amount is close to the quoted amount of my LTA for this year. But my question is if not the entire amount is paid in cash for purchase, but we need the full value in the invoice/bill, can the total amount be claimed?

[sairamboko]

I haven't declared LTA with my employer and now IT proofs are submitted and approved. Can i still claim this ? If not, can i claim this while filing the IT returns?

[vsrivatsa]

Originally Posted by Weathered

Since LTC cash voucher scheme accepts the tax proofs till March 31st, checked if i can claim the benefits in ITR directly. It looks like LTA/LTC claims can only be claimed via employer.

Did you check with a CA that we cannot claim it directly? I am in the same boat and had allocated very less and my company is also not allowing me to change the allocation.
Some links seem to indicate that it is possible: Link, Link 2
Although this may lead to a mismatch and one may need to face a e-Proceeding: Link

Originally Posted by sairamboko

I haven't declared LTA with my employer and now IT proofs are submitted and approved. Can i still claim this ? If not, can i claim this while filing the IT returns?

I am in similar situation - refer my comments above.

[girishv]

Originally Posted by venkikewl

Say for example, if i opted to buy a 2 wheeler worth 2.3L OR price & have paid 70k in cash & rest using finance. I get a regular invoice slip of the total cost of the bike from showroom right. So in this case, can i claim LTA for the entire 2.3L or only on the cash paid which is 70K

Thanks

You have to show the evidence of digital payment.
Secondly, you can not claim the road tax as expense for this purpose.

Between, if you had made the payment in cash, then you can not claim any part of this.

[gopaneel]

Originally Posted by venkikewl

Say for example, if i opted to buy a 2 wheeler worth 2.3L OR price & have paid 70k in cash & rest using finance. I get a regular invoice slip of the total cost of the bike from showroom right. So in this case, can i claim LTA for the entire 2.3L or only on the cash paid which is 70K.

Any information would be helpful as our company's deadline to submit bills is 2nd of March, so I have time to finalize & purchase a bike if its feasible.

Thanks

Cash payments are not eligible. However, my org has said EMI payment is eligible if the purchase has been made in this period. However, I have just submitted the docs and it is pending approval.

Originally Posted by sairamboko

I haven't declared LTA with my employer and now IT proofs are submitted and approved. Can i still claim this ? If not, can i claim this while filing the IT returns?

Again, in our org, LTC claim submission is different from other declaration like investments, loan interest, etc. So while these have closed in December, LTC claims can be made Jan through Mar as well. I am not sure if this is the case in all organizations. Company has also rolled out a clear policy for LTC voucher scheme. You can try reaching out to your HR for more info, since a lot of detail seems to be employer specific.

[vsrivatsa]

Based on the feedback I heard from a CA it is not possible to directly claim the LTC Cash voucher benefit at the time of filing Returns. One has to mandatorily go through the Employer and it has to be part of the Form 16.

[Vishal.R]

Anyone from private sector purchased car?

Which amount to consider as purchase amount? ex. showroom price or on road price including Insurance and RTO? as GST is mandatory while claiming benefit.

[mustangvins]

Originally Posted by Vishal.R

Anyone from private sector purchased car?

Which amount to consider as purchase amount? ex. showroom price or on road price including Insurance and RTO? as GST is mandatory while claiming benefit.

I believe GST is applied only on the ex-showroom price and the road tax is a state tax which is not eligible for LTA. The invoice is also typically given only on the ex-showroom price and doesn't usually include the road tax.

The GST on insurance is different from that of the car since there is no cess but you should be able to include that too in your LTA claim if it was included in your invoice amount.

In any case, there will be a cap on the total LTA amount depending on your CTC and company and you may not be allowed to claim 1/3rd of the car's purchase value.

[libranof1987]

I heard of this scheme and luckily, had a spend coming up that fit well with the conditions laid out and my LTA. In my salary structure, I have the option of allocating an amount towards LTC. If I don't, that is given to me (taxable) as Special Pay. Until Jan, the amount under LTC was 0; so, once I was sure of my purchase, I put in the maximum number in LTC and submitted all the relevant docs.

Then came the wet blanket. Per my HR, the LTC is accumulated month-on-month, after you allot an amount to it. Hence, I only have a months' worth of LTC (annual amount/12) available to at the moment. I was under the misconception that even if I define the LTC amount now, it would re-calculate my tax outgo and adjust accordingly once it approves the purchase under the new scheme.

Is it that my HR is being lazy or that it cannot be done at all. What about during tax filling?

[vsrivatsa]

Originally Posted by libranof1987

Is it that my HR is being lazy or that it cannot be done at all. What about during tax filling?

I had raised this query with a CA (via a relative of mine) and the response was that this cannot be claimed directly during tax filing and has to go via Form 16 of the employer only.

[condor]

That restriction is a bummer. In the org that I work for, we have to submit our proofs by Dec itself. The scheme must be open for purchases from Oct 2020 to Mar 31, 2021 if I am correct. If I am correct, then there is a gap ?