Mutual Fund Application Forms Download Any Applications
Invest in Tax Saving Mutual Funds Invest Online
Infrastructure Bond Application Forms Download Applications

Tuesday 26 February 2013

Know how to utilise your LTA and enjoy tax break

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

 

THE posters of `Incredible India' are always enticing. We all wish to take a break from the mundane everyday life and go on a vacation with our families, but the expenditure involved forces us to keep our plans on the back burner. Your salary package may be providing you for a leave travel allowance (LTA) and you ease this financial worry by claiming it for this travel and enjoy the tax benefits also.


LTA ­ purpose: LTA is paid to employees to meet the cost of domestic travel with fami ly to any place in India. In some organiza tions, LTA is granted over and above the regular pay, while in most others, it forms part of the cost to company of the employee.


Tax benefits: Once an employee has incurred a domestic travel, he can submit a reimbursement claim with the employer. The amount so reimbursed by the employer can be claimed as exempt under section 10(5) of the Income-tax Act, 1961 (`IT Act') if the following conditions are satisfied: The travel is within India and the trav el expenditure is for self, spouse, children, dependent parents and dependent siblings. Expenses such as hotel room costs, sightseeing, food, etc, do not qualify for the exemption.

Tax exemption is available on the ap plicable fare for the shortest route to the place of destination. Depending on the mode of travel, limits specified are as under:

1) In case travel is by air: Economy air fare on national carrier on shortest route.


2) If destinations are connected by rail: First AC rail fare by shortest route.
3) If destinations are not connected by rail: First class or deluxe class fare, where recognised public transport system exists, otherwise first AC rail fare for the equivalent distance.

Tax exemption is available twice in a block of four calendar years. The current block being 2010-2013.


What if an employee fails to avail tax exemption in the specified block? If an employee has not claimed the benefit during any specified block, the benefit of one trip can be carried over to the first calendar year in the immediately following block (2014 ­ 2017). This is in addition to the two eligible exemptions in that particular block. For example, if for cer tain reasons Mr. Sareen could not plan a vacation in the block 2010-2013, he may still carry forward one trip and claim the tax exemption in the first calendar year in the next block, that is 2014.


LTA under the Direct Tax Code (DTC): As per the Direct Tax Code bill tabled in the Parliament, LTA exemption may not be available but there is a popular demand to restore this beneficial provision.


What happens if employee fails to submit the bills with the employer? It is possible that the employee has not availed the amount that is there in the salary package. In such case, most employers pay the entire amount as ex-gratia after deducting taxes.


To sum up: With above tax-friendly provisions, it may be a good idea to pack your bags and take your family on a vacation. The travel costs are high but tax saving on the total cost would reduce some burden and help you in enjoying your vacation.

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

  1. ICICI Prudential Tax PlanInvest Online
  2. HDFC TaxSaverInvest Online
  3. DSP BlackRock Tax Saver FundInvest Online
  4. Reliance Tax Saver (ELSS) FundInvest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) FundInvest Online
  7. SBI Magnum Tax Gain Scheme 1993Invest Online
  8. Sundaram Tax SaverInvest Online
  9. Edelweiss ELSS Invest Online

------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver MutualFundsInvest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

No comments:

Post a Comment

Mutual Fund Application Forms Download Any Applications
Invest in Tax Saving Mutual Funds Invest Online
Infrastructure Bond Application Forms Download Applications

Popular Posts