NO NEED FOR PROOF TO CLAIM LTA, CONVEYANCE: SC
The Supreme Court said that the Employers, while assessing the conveyance, and leave and travel allowance (LTA) claims of their staff, are under no statutory obligation to collect supporting evidence
and furnish them to the tax authorities, Assessee employers are under no obligation to collect bills and details to prove that the employees had utilized the amounts obtained against these claims on travel and related expenses. As per current rules, if claims on LTA and conveyance are not supported by journey bills, they would be taxed. For instance, on an LTA allowance of Rs. 1 lakh, if documentary proof such as air tickets, taxi vouchers and other public transport bills is submitted
only for Rs. 50,000, then tax is applicable on the rest of the amount. Regardless of the amount an executive is entitled to as LTA, tax laws allow air tickets only in the domestic sector for the claim. Rejecting the plea, the court in its order said that the beneficiary of exemption under Section 10(5) (of the Income Tax Act) is an individual employee And there is no circular of Central Board of Direct Taxes (CBDT) requiring the employer under Section 192 to collect and examine the supporting evidence to the declaration to be submitted by an employee(s).
and furnish them to the tax authorities, Assessee employers are under no obligation to collect bills and details to prove that the employees had utilized the amounts obtained against these claims on travel and related expenses. As per current rules, if claims on LTA and conveyance are not supported by journey bills, they would be taxed. For instance, on an LTA allowance of Rs. 1 lakh, if documentary proof such as air tickets, taxi vouchers and other public transport bills is submitted
only for Rs. 50,000, then tax is applicable on the rest of the amount. Regardless of the amount an executive is entitled to as LTA, tax laws allow air tickets only in the domestic sector for the claim. Rejecting the plea, the court in its order said that the beneficiary of exemption under Section 10(5) (of the Income Tax Act) is an individual employee And there is no circular of Central Board of Direct Taxes (CBDT) requiring the employer under Section 192 to collect and examine the supporting evidence to the declaration to be submitted by an employee(s).
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