LTA Exemption Only As Per I-T Rules

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: The Finance Ministry is revising the interest rates for GPF and PPF every year at its will. Is it admissible for the amount deposited in PPF or GPF in the previous years? If we buy NSCs say in 1999 when the average interest rate was say 11 per cent, we will continue to get the same interest even though the interest rate on NSCs is now reduced. But in case of PPF/GPF, the amount that was deposited in 1999 will also get reduced rate of interest now. Isn’t it legally invalid? The previous deposits should continue to get same rates of interest that were applicable at the time of their deposit while the new deposits should get the newly announced rates of interest. If we challenge the reduction of rate on GPF/PPF in the court of law, what are our chances of winning?
— Sushma Goyal, jagvirgoyal@yahoo.co.in

I am in complete agreement with you. I had written repeatedly on this subject. Through my articles I had even requested Mr Kirit Somaiya of Jago Abhiyan to file a PIL on the issue of PPF interest reduction on old deposits. There was no response whatsoever from any quarter. I feel that the chances of investors winning a PIL should be very bright.

I am a software professional. In my pay structure, I am entitled to an LTA of Rs 5,000. To get this reimbursement, what types of bills can I produce? Actually, I, along with my parents, went on a tour by a private travel agency in taxi. The bill is for around Rs 10,000. I am working for this company for 1 year 4 months. When I asked them to consider this bill for 2 years they are saying that after 2 years only I am allowed to get LTA of two years. Then I asked them to consider this for one year and 4 months period and reimburse Rs 6,650 (= 5,000 for last year + 1,650 for 4 months of this year). But they are saying that for that also rules are not permitting. I want to know the exact policy of LTA.
— Kiran, kiran@hyd.hellosoft.com