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Written By: Rajeev Kumar
Claiming certain tax exemptions while filing ITR can be troublesome for salaried employees. One such exemption is LTA. Read on for details
For claiming LTA benefit, employees need to submit documentary evidence of the incurred travel expenditure.
In case the employee doesn't submit proof, the employer deducts higher TDS from salary.
At the time of filing ITR, the employee is legally allowed to claim LTA for the applicable financial year.
However, the employee can face challenges while claiming LTA benefit at the time of filing Income Tax Return.
Tax deduction is primarily the responsibility of the employer. These deductions reflect in Form 16 given by the employer.
If LTA doesn't reflect in Form 16 and a claim is made during ITR filing then the tax department may question such claims while processing the return.
Thus, employees claiming LTA directly at the time of ITR face the risk of income tax notices to verify their claims.
Note: If you haven't submitted proofs for LTA exemption for FY 2023-24 yet, do it by March 31 after talking to your HR manager!
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So, it's always better to claim LTA tax exemption through your employer.