Question: IT Act: LTA Exemption - SC ruling latest

[writetorangs]

All,

As per the latest Supreme Court judgement, "The beneficiary of exemption under Section 10(5) (of the Income Tax Act) is an individual employee. 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)."

Companies have not implement this so far & are continuing with the practice of collecting supporting documents & tickets. They are also deducting Income tax for not providing proof.

As per RTI act and relevant rules, how do we ensure that this judgement is implemented in best of sprit by companies in India.

Regards

[karira]

If it is a private company (not a Public Authority ) then why don't you simply give a copy of the SC order to the HR and Accounts department.

[writetorangs]

Already did..but not willing to consider the SC ruling unless IT dept gives a circular forcing companies to implement. Employees loose money in terms of taxes that they pay if they do not have bills to claim LTA.

Regards

[karira]

Originally Posted by writetorangs

Already did..but not willing to consider the SC ruling unless IT dept gives a circular forcing companies to implement. Employees loose money in terms of taxes that they pay if they do not have bills to claim LTA.
Regards

Getting the IT department to issue a circular like that is virtually impossible.

Anyhow, you can try by meeting the PRO at your local IT Office and seek his opinion on it.

[writetorangs]

thanks..will try doing that. If I file an RTI on the IT Dept to know the SC order implementation status ? will that help.

Regards

[sandeepbaheti]

Originally Posted by writetorangs

thanks..will try doing that. If I file an RTI on the IT Dept to know the SC order implementation status ? will that help.

Regards

That will only help you know the status and nothing more. If you are interested in getting that information , you may very much file RTI application.

[jps50]

The employers are collecting evidence of travel under LTC for their own records and audit and not for income tax dept. Hence I think court will not stop them from doing so.
IT Dept may not need evidence of LTC of employees.

However, if U want IT Dept to abide by SC judgement, U can file RTI application on action taken report on it. If no action is initiated, ask for reasons. U can also file appln in SC for non-compliance of its orders.

For filing RTI appln pl visit

Effective:
http://www.rtiindia.org/forum/blogs/...effective.html

Central Govt appln:
http://www.rtiindia.org/forum/blogs/...govt-info.html

[writetorangs]

If the employer needs evidence of the usage of LTA, then we can furnish this information . However, if there is a tax deduction on the LTA paid, then its a violation of the SC order and without IT dept initiating any action to implementing the SC order, then its an issue at hand.

Regards