Business Law

LTA exemption

| Updated on March 08, 2021

You can claim LTA exemption from tax this year even if you don’t travel, provided you satisfy the following four conditions: a) three times the amount of LTA earned must be spent on buying goods and services; b) the goods and services must be purchased only from registered GST dealers; c) payments should be done (should have been done) through digital modes, and d) all invoices of the purchase must be submitted to the employer. Needless to say, all the goods and services ought to be purchased before March 31. The government has brought this measure to spur to demand in the economy.

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Published on March 08, 2021
income tax
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