Proof of Leave Travel Allowance The Apex court in a recent order stated that there is no statutory obligation on the employer to collect supporting evidence from the employees claiming LTA/LTC exemption and furnish it to the tax department. Currently, if LTA and conveyance claims are not supported by journey bills they would be taxed. The order came on a plea by Larsen & Toubro and ITI. The bench comprising Justice SH Kapadia and Justice Aftab said that employers are under no statutory obligation to collect supporting evidence and furnish them to tax authorities. The court stated “the beneficiary of exemption U/s 10(5) is an individual employee. There is no circular of Central Board of Direct Taxes requiring the employer under Sec192 to collect and examine the supporting evidence to the declaration to be submitted by an employee”. However the concerned employee must retain such proofs to be presented before I-T Dept. when required.
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Source : www.simpletaxindia.net Income Tax Provisions at a Glance as being circulated among the Members and being refreshment of the Income Tax Provisions: 1. Detailed information of Income Tax is available on www.incometaxindia.gov.in 2. As per Income Tax Act, Income is taxable under five heads- Salary, House Property, Business or Profession, Capital Gain and Other Sources. 3. Salaried person must obtain Form 16 from his Employer Every Year. 4. Income Tax Return should be filed by considering Form 16 and other Income. 5. Transport Allowance is exempt up to Rs.1,600 per month. 6. 30% Standard deduction is available on Income from House Property. 7. Income to be considered as deemed let out on second House property. 8. For self-occupied house property, deduction of Interest on Housing Loan is allowed up to Rs. 200,000/- and
Source : www.simpletaxindia.net DEDUCTION ON REPAYMENT OF HOUSE LOAN UNDER SECTION 80C 1. Deduction for house loan /instalment available up to Rs 150000/- under section 80C (earlier limit was Rs.100000 /-) 2. The limit of Rs 150000 as above is total limit u/s 80C for all type of savings, plus section 80CCC(pension policy) plus u/s 80CCD (Contributory Pension Plan). Means the aggregate amount of deduction under above referred sections cannot exceed Rs. 1,50,000. 3. The payment of loan should be made towards cost of purchase/construction of new residential house property. 4. The house property income should be assessable in the hand of assessee in simple term assessee should be the owner of the house property. 5. The house loan should not be for addition or alteration to,or renovation or repair of house property 6. House construction must be completed before the end of the previous year (read details here) Completion of house means 1. completion certificate in respect