LTA exemption can’t be claimed for travel outside India

Dec 17 2013, 10:31 IST
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SummaryThis Diwali, my employer gave me a cash bonus of R15,000 and a gift voucher of R5,000.

This Diwali, my employer gave me a cash bonus of Rs 15,000 and a gift voucher of Rs 5,000. I want to know whether such bonus received is taxable in my hands.

—Anand Patel

Under Section 17 of the IT Act, salary includes bonus received from the employer and, as such, it is taxable as ‘income from salary’ in the hands of the employee. Accordingly, the cash bonus of Rs 15,000 will be taxable in your hands. However, gift vouchers are not taxable in the hands of the employee.

I work in a private organisation.

I am planning a vacation to Mauritius this year, along with my wife and daughter. The trip is expected to cost me about Rs 1,00,000, including travel costs, and I am entitled to an LTA of Rs 75,000. How much amount can I claim as exemption and what are the documents that I need to submit for it?

—Dipankar Gupta

Leave travel exemption (lTA) is subject to the expenses actually incurred towards travel in India. As such, you will not be able to claim the exemption since you will be travelling outside India.

I purchased a residential property last month with a home loan from SBI. I am paying EMIs to the bank now. Can I claim these EMI payments under Section 80C?

—Damodar Selvaraj

The EMI consists of two components, i.e., the principal amount and the interest. The principal component of the EMI qualifies for deduction under Section 80C as re-payment of housing loan. Further, the amount paid as stamp duty and registration charges at the time of purchase will be eligible for deduction under Section 80C. Moreover, you can claim interest expenses actually paid, subject to a maximum of R1,50,000 as loss from house property. The income from house property can be deducted from income from salary while computing the taxable income for the financial year.

I started trading in shares in January 2013, at the instance of one of my friends. As the stock market declined, I started selling the shares and lost about R1,00,000. I

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