Proof of Leave Travel Allowance

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.


  1. Hi.. I have a question regarding the last statement of the post --- "However the concerned employee must retain such proofs to be presented before I-T Dept. when required."

    How long must the proof be retained by the individual?

    Thanks in advance,

  2. Every employee/assessee should retain all the documents and/or proofs related to his income for 6 years.

  3. Thane Guardian Minister Ganesh Naik Holds a Press Conference on the Issue of Property Tax.

    Recently, some of the residents of Navi Mumbai had received notice from NMMC with regards to increase in their property tax. However, Thane Guardian Minister Ganesh Naik has stalled these notices and a rectified notice would be prepared and presented in front of the General Body for approval. The minister’s order has brought relief amongst the residents.
    During the last elections, Guardian Minister Ganesh Naik had promised to the citizens of Navi Mumbai that there would be no increase in property tax for the next twenty years, however, opposite to this, few weeks back, the residents of a society in Nerul has received notices of increased property tax by NMMC. Taking up this issue, Thane Guardian Minister Ganesh Naik held a press conference to clear the doubts of the people....


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