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Leave Travel Allowance: The Supreme Court has given an important decision against the appeal of the country’s largest bank State Bank of India. With Leave Travel Allowance, you can use it for traveling only in India. The Division Bench of the Supreme Court headed by Chief Justice Uday Umesh Lalil has held that the benefit of LTA will not be available for traveling abroad.
SBI’s appeal rejected
The Supreme Court, in its decision, said that TDS is necessary to be levied on foreign travel on behalf of State Bank of India (SBI) employees because the employees get LTC for traveling within the country itself.
Facility will not be available on foreign travel
SBI’s appeal was rejected by the High Court. SBI had appealed in the Supreme Court against the decision of the Delhi High Court. The Supreme Court said in the judgment that SBI employees cannot get exemption on the amount received under LTA claim, because these people had traveled abroad.
Get the benefit of tax exemption
Chief Justice of the Supreme Court Justice UU Lalit, Justice S Ravindra Bhatt and Justice Sudhanshu Dahiya held that according to the rules of LTA, an employee gets the benefit of tax exemption for traveling between two cities within the country itself. The Supreme Court said that if the employees travel outside the country, that is, abroad. So they will not get the benefit of LTA under the provision of section 10(5) of the Income Tax Act.
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Exemption is available in this rule
It is known that many types of exemptions are given to the salaried people of the country under the Income Tax Act 1961. Out of these exemptions, LTA/LTC is used the most by the employees.
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