LTA Claim Without Form 16: If your employer has not included Leave Travel Allowance (LTA) in Form 16, you can still claim it in your Income Tax Return (ITR). However, for this, correct documents and following tax rules are necessary. This will help you avoid any kind of investigation.
Who can claim LTA?
LTA is an allowance given in the salary. It is tax exempted under section 10(5) of the Income Tax Act. However, this exemption is applicable only on the actual expenses incurred on domestic travel (travel within India). It does not include the cost of hotel, food or sightseeing.
According to Sujeet Sudhakar Bangar, founder of TaxBuddy.com, “LTA falls under the allowance category of salary. It is eligible for tax exemption under section 10(5). If the employer has not included it in Form 16, the employee can manually declare it in ITR and avail the exemption.”
How to claim LTA without Form 16?
According to Bangar, employees can claim LTA by following the steps given below:
- Report LTA as allowance in the salary details section of the ITR form.
- Claim exemption separately under section 10(5) of Income Tax.
- Keep all important documents safe, such as travel tickets, boarding passes and payment receipts.
- If tax authorities may investigate the LTA claim, documents may be required.
Keep these things in mind while claiming LTA
- The benefit of tax exemption on LTA is available only in the old tax regime.
- Employees under the new tax regime cannot avail this benefit.
- LTA can be claimed only 2 times in every block of 4 years.
- International trips are not covered under LTA exemption.
- If wrong LTA is claimed, the Income Tax Department can investigate and a penalty can also be imposed.
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