Are you planning a trip to Kerala? If you opt for LTC Kerala Tour Packages, You can enjoy the Kerala trip with your loved ones, carefree and happy, and reduce your taxable income as well if you are in India!
Leave Travel Concession (LTC) is a travel concession for government employees in India. The Indian government offers all employees to travel all over India in 4 years once and travel costs also payable by the government. LTC tour packages for central government employees are designed for employees traveling under Leave Travel Concession with family or alone. You can visit all the beautiful places in Kerala using your Leave Travel Concession. If you are planning to travel to Kerala, then claiming LTC Kerala Tour Packages for tax benefit is the way to go.
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For traveling anywhere in India with his family, a certain amount is paid by an employer to an employee. This certain amount is exempt from tax subject to certain provisions. You can use it for enjoying your holiday in Kerala while saving the tax.
What is Leave Travel Concession (LTC)?
Leave Travel Concession (LTC) is applicable to Central Government Employees. This is not included in the taxable income according to Section 10 (13A) [Income Tax Act] as a pre-requisite to the employees. There are certain underlying conditions that are followed while providing LTC.
LTC is provided by a company or firm for travel expenses and the balance, after the concession amount, is undertaken by the individual. As aforementioned, LTA is provided by an employer while LTC by Government. LTC Kerala Tour Packages can be availed from Delhi, Mumbai, Bangalore, Vadodara, and Kolkata.
Leave Travel Allowance (LTA)
Leave Travel Allowance (LTA) is provided by an employer to his/her employee for traveling anywhere in India. LTA is eligible for tax exemption per Income Tax Act, 1961. Employees eligible for LTA can reimburse this amount from the respective employer, as it is part of cost-to-company (CTC). This reimbursement, subject to certain conditions and limits, is exempted from the taxable income. In any case, if the employee has not availed of the exemptions in any year, he can carry over such exemption to next year provided he avails of the benefits.
When can you claim LTC Kerala Tour Packages?
The travel allowance is paid in your salary, every financial year. As per the rules of the Income Tax Act, it can only be claimed or reimbursed for two journeys in four years. For example, if you are eligible for an annual LTA of 20,000 Rupees, an exemption of 40,000 Rupees can be claimed in a block year. The excess amount will be spent by you, without any reimbursement.
LTA can be carried over to the first year of the next block if you have not availed of it during the first block period. In this case, a reimbursement claim can be made for three years.
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In case both you and your spouse are eligible for LTA, an exemption can be claimed for separate journeys. Expenses can be divided among you and your spouse if there are only two journeys undertaken by the family in a block of 4 years. You should ensure there is no duplication when the claims are filed.
What are you entitled to in LTC Kerala Tour Packages?
LTA is claimed once you have applied for leave from your company or firm and traveled all around India. This is because according to Income Tax Act Section 10(5), only the travels within India can be reimbursed, even though there is a high LTA within your salary.
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Please note that expenses incurred for hotel rooms and sightseeing are not included in the reimbursement.
Conditions that include your family comprise the following:
- The family includes your spouse, two children, parents dependent on you, and siblings.
- Reimbursement for more than two children cannot be claimed unless the second pregnancy has resulted in twins or more.
The expenses can be claimed only for the shortest route possible. Tax exemption is limited only to the fare in the shortest route. For instance, airfare in the economy, AC rail fare (first class), or first/deluxe class bus charges. In case there is no public transport, taxi or rent-a-car fare can be claimed.
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Expenses on hotel rooms, sightseeing, food, etc, cannot be included. This means that you cannot claim an exemption for the money you spent on your stay at a five-star hotel.
The family can comprise your spouse, two children, brothers, sisters, and parents if they are dependent on you. You cannot claim for more than two children unless the second birth has resulted in multiple children.
For this, a bill is obtained from the tour operating company as proof. If the issued bill is not accepted by your employer, an exemption can be claimed through income tax returns. LTA can be claimed from your present and previous organizations if those are not claimed until now.
Best LTC Kerala Tour Packages routes in Kerala
The best trips to take advantage of substantial LTC Kerala Tour Packages when in Kerala, would be Alleppey houseboat rides. Places like Kumarakom, Thekkady, and Munnar demands traveling via taxi, which can fetch a high amount through reimbursement. Wayanad, in Northern Kerala, is such a place as will that is a tourist destination. Check out our Kerala Honeymoon Packages or Kerala Tour Packages for claiming a good LTA or LTC benefit.