Income Not included under the Head Salaries for computing Income Tax

 Definition of Family – As per the provisions of the Rules, family means:

Spouse and children of the individual.

Parents,   brothers   and   sisters   who   are   wholly   or   mainly dependent on the individual.

Foreign Travel – As per the provisions of the Rules, exemption is not allowable in case of travel abroad.

Obligation of the employer –The employer has to satisfy the obligation that leave travel (fare) concession is not taxable in view of section 10(5)  and he is not only required to be satisfied about the provisions of the said clause but also to keep and preserve evidence in support thereof.

Some important points to be considered are as under:

1. It is uniform for all employees

2. Where an employee does not avail LTC, either one or on both the occasions during the block of 4 calendar years, the value of LTC first availed during the first calendar year of the immediately succeeding block shall be eligible for exemption in lieu of exemption not availed during the preceding block Only one trip can be carried forward to be availed in the immediately succeeding block.

3. Quantum of Exemption – The basic rule is that quantum of exemption will be limited to the actual expense incurred on the journey.