[zaks]

Saw this news on TOI today and if true it will put more money in our pockets during the end of this financial year.

Now, you don't need proof to claim LTA, conveyance-India Business-Business-The Times of India

[greenhorn]

doesnt that just mean the employers dont need them. what about induviduals?

[zaks]

No, it means that we don't have to furnish any bills to claim tax benefit, as a result 100% of the LTA is tax free

[bblost]

Originally Posted by zaks

No, it means that we don't have to furnish any bills to claim tax benefit, as a result 100% of the LTA is tax free

It means that the Govt trusts you to provide the correct information and in case of an audit provide the relevant bills and receipts.

Never trust the Govt. They make criminals out of honest people.

[Spitfire]

Instead of the employer taking the burden of showing the proof it is now the individual employees headache.

"The beneficiary of exemption under Section 10(5) (of the Income Tax Act) is an individual employee. There is no circular of Central Board of Direct Taxes (CBDT) requiring the employer under Section 192 to collect and examine the supporting evidence to the declaration to be submitted by an employee(s).”

In case of an IT Audit you will require to furnish the bills.

[finneyp]

You need to have the Bills anyway, only thing you need not submit the same to your employer.

[zaks]

Originally Posted by Spitfire

Instead of the employer taking the burden of showing the proof it is now the individual employees headache.

"The beneficiary of exemption under Section 10(5) (of the Income Tax Act) is an individual employee. There is no circular of Central Board of Direct Taxes (CBDT) requiring the employer under Section 192 to collect and examine the supporting evidence to the declaration to be submitted by an employee(s).”

In case of an IT Audit you will require to furnish the bills.

Those bills will surely be lost by the time they decide to do an audit anyways.

[Spitfire]

Originally Posted by zaks

Those bills will surely be lost by the time they decide to do an audit anyways.

That excuse wont work

[lambuhere1]

In addition one needs to take a compulsory 3 days "Earned Leave" to avail the said benefit

[amtak]

Yes. And this rule has helped me to save my tax by 1100 Rs. All hail the govt. of India! Wish they had mentioned this at the mid of this month before our payroll. I could have saved some 3,000 INR

[Jaggu]

This is not yet notified and until that happens dont go running to your accounts dept, also in case your submission is pulled up during audit, onus will be with you to produce the bills

[sam003]

And as per IT dept rules you have to keep bills for 7 yrs. If any scrutiny happened you have to produce those bills.

[narayan]

too bad our company has no LTA policy. :(

[amtak]

Originally Posted by Jaggu

This is not yet notified and until that happens dont go running to your accounts dept, also in case your submission is pulled up during audit, onus will be with you to produce the bills

I ran and also took 10/12 guys to the Fin guy who was already scratching his head because of this. We all are now demanding a refund

Originally Posted by narayan

too bad our company has no LTA policy. :(

Oops! Even my brother's co. is like this. No Holidays for you is it?

[Ravveendrra]

Originally Posted by greenhorn

doesnt that just mean the employers dont need them. what about induviduals?

That decision was in the case of a dispute between the tax gept. and the employers and does not apply to employees and their relationship with their companies or the individuals obligation to the tax dept.

The tax guys wanted the companies to pay the tax (as TDS) on the LTA since the proof was not with the companies. The companies argued that they were not required to collect the proof and won.

This does not mean that a company cannot ask for proof on its own, they can do so to prevent misuse of LTA facility etc.

As rightly pointed out by finneyp and sam, the employee is still required to keep the bills etc.

Cheers,