Latest news with #AbhishekSoni
Economic Times
4 days ago
- Business
- Economic Times
LTA exemption in new tax regime: Can you claim leave travel allowance exemption in new tax regime or is it taxable?
From April 1, 2025, the new tax regime has become more attractive than the old tax regime for a larger number of taxpayers. This is because zero tax is payable on net taxable income up to Rs 12 lakh for FY 2025-26 under the new tax regime. Taxpayers often look for deductions from their gross income to reduce taxable income to Rs 12 lakh or below in order to pay zero tax under the new tax regime. Many would like to know if they can claim leave travel allowance (LTA) deduction via travel bills under the new tax regime or Wealth online tells you if you can claim exemption on leave travel allowance for the FY 2025-26 under the new tax regime. According to income tax rules, LTA exemption is not available under the new tax regime. An individual opting for the new tax regime for FY 2025-26 and getting LTA from their employer cannot claim exemption using it. The tax exemption on LTA is not available under the new tax regime. Hence, if you have received LTA as a part of Cost-to-Company (CTC) and opt for the new tax regime for TDS on salary for FY 2025-26, then LTA will be taxable even if you submit bills of travel. For private sector employees, LTA tax exemption is available if they opt for the old tax regime for FY 2025-26 to pay tax. However, specific rules prescribed under the Income Tax Act, 1961, must be followed to claim LTA exemption under the old tax regime. In the old tax regime, LTA exemption is available under Section 10(5) of the Income Tax the LTA exemption is available twice in a four-year block. The current block extends from January 1, 2022, to December 31, 2025. A taxpayer can claim LTA exemption on a maximum of two journeys in this an employee is unable to undertake a journey/claim LTA in the block, then one journey/LTA can be carried forward to the first year of the next block. Abhishek Soni, CEO, - an ITR filing website, says, "The LTA exemption rules for government employees are not different vis-à-vis those for private sector employees. The income tax laws allow government employees to claim LTA exemption twice in a block of four years, either to visit their hometown or to any place in India. Further, this exemption will be available if the government employee opts for the old tax regime in a particular financial year. No LTA exemption can be claimed under the new tax regime."Soni explains the conditions that a taxpayer must meet to claim LTA exemption under the old tax regime. a) LTA part of salary: An employee must be receiving LTA as part of his/her salary from his/her employer. b) Submission of travel bills: Employees must submit the bills and other travel documents to their employer before the date specified by the employer for doing so, to claim tax exemption in a particular financial year. c) No international vacation: The LTA exemption is available for travel within India and cannot be claimed for international travel. d) Cost of travelling for specific family members: The LTA tax exemption can also be claimed for cost of travel of accompanying family members. For this purpose, family members can include spouse, children, dependent parents, and dependent siblings. e) Covers only mode of travel: LTA exemption rules cover only cost incurred for actual transportation for travel, including by air, train, or road. LTA exemption is not allowed for cost of hotel bookings and food expenses during the trip. The maximum LTA exemption that can be claimed depends on the actual cost incurred on transportation and the LTA amount allowed by the employer. Soni says, "The LTA exemption is allowed for the cost of the shortest journey (either by bus, train or air) from the employee's place of residence to the travel destination and back. If the LTA offered by the employer is less than the actual cost incurred on transportation, the exemption would be limited to the LTA allowed by the employer and not the actual costs incurred."
Time of India
26-05-2025
- Business
- Time of India
LTA exemption in new tax regime: Can you claim leave travel allowance exemption in new tax regime or is it taxable?
From April 1, 2025, the new tax regime has become more attractive than the old tax regime for a larger number of taxpayers. This is because zero tax is payable on net taxable income up to Rs 12 lakh for FY 2025-26 under the new tax regime. Taxpayers often look for deductions from their gross income to reduce taxable income to Rs 12 lakh or below in order to pay zero tax under the new tax regime. Many would like to know if they can claim leave travel allowance (LTA) deduction via travel bills under the new tax regime or not. ET Wealth online tells you if you can claim exemption on leave travel allowance for the FY 2025-26 under the new tax regime. Is LTA exemption available under the new tax regime? According to income tax rules, LTA exemption is not available under the new tax regime. An individual opting for the new tax regime for FY 2025-26 and getting LTA from their employer cannot claim exemption using it. Is LTA taxable under the new tax regime? The tax exemption on LTA is not available under the new tax regime. Hence, if you have received LTA as a part of Cost-to-Company (CTC) and opt for the new tax regime for TDS on salary for FY 2025-26, then LTA will be taxable even if you submit bills of travel. When is LTA tax exemption available for private sector employees? For private sector employees, LTA tax exemption is available if they opt for the old tax regime for FY 2025-26 to pay tax. However, specific rules prescribed under the Income Tax Act, 1961, must be followed to claim LTA exemption under the old tax regime. Live Events In the old tax regime, LTA exemption is available under Section 10(5) of the Income Tax Act. Is LTA exemption available in a block of four years? Yes, the LTA exemption is available twice in a four-year block. The current block extends from January 1, 2022, to December 31, 2025. A taxpayer can claim LTA exemption on a maximum of two journeys in this block. If an employee is unable to undertake a journey/claim LTA in the block, then one journey/LTA can be carried forward to the first year of the next block. Are LTA exemption rules different for government employees? Abhishek Soni, CEO, - an ITR filing website, says, "The LTA exemption rules for government employees are not different vis-à-vis those for private sector employees. The income tax laws allow government employees to claim LTA exemption twice in a block of four years, either to visit their hometown or to any place in India. Further, this exemption will be available if the government employee opts for the old tax regime in a particular financial year. No LTA exemption can be claimed under the new tax regime." Rules to claim LTA exemption under old tax regime Soni explains the conditions that a taxpayer must meet to claim LTA exemption under the old tax regime. a) LTA part of salary: An employee must be receiving LTA as part of his/her salary from his/her employer. b) Submission of travel bills: Employees must submit the bills and other travel documents to their employer before the date specified by the employer for doing so, to claim tax exemption in a particular financial year. c) No international vacation: The LTA exemption is available for travel within India and cannot be claimed for international travel. d) Cost of travelling for specific family members: The LTA tax exemption can also be claimed for cost of travel of accompanying family members. For this purpose, family members can include spouse, children, dependent parents, and dependent siblings. e) Covers only mode of travel: LTA exemption rules cover only cost incurred for actual transportation for travel, including by air, train, or road. LTA exemption is not allowed for cost of hotel bookings and food expenses during the trip. Maximum LTA exemption in old tax regime The maximum LTA exemption that can be claimed depends on the actual cost incurred on transportation and the LTA amount allowed by the employer. Soni says, "The LTA exemption is allowed for the cost of the shortest journey (either by bus, train or air) from the employee's place of residence to the travel destination and back. If the LTA offered by the employer is less than the actual cost incurred on transportation, the exemption would be limited to the LTA allowed by the employer and not the actual costs incurred."
Time of India
10-05-2025
- Business
- Time of India
How minors can apply for a PAN card; is the process different if you are an NRI minor? Here's a step-by-step guide
The Income Tax Department on May 8, 2025 launched an e-campaign about the importance of having a Permanent Account Number (PAN) card. In the light of this e-campaign, it's important to know all about PAN and especially how young individuals, especially those under 18 years of age can get one. To give you a brief overview, minors can apply for a PAN card with their parents or guardian as their representative, and this is applicable even if the minor is a Non-resident Indian (NRI). #Operation Sindoor India-Pakistan Clash Live Updates| Pak moving troops to border areas? All that's happening Why India chose to abstain instead of 'No Vote' against IMF billion-dollar funding to Pakistan How Pak's jihadi general Munir became trapped in his own vice Read below to get all the necessary information about how minors (those under age of 18) can apply for a PAN card, even if they are an NRI and how much it costs. Can Minors apply and get a PAN card? According to Chartered Accountant Abhishek Soni, co-founder, Tax2Win, 'There is a misconception that a PAN card is only required by individuals above age 18. The minor PAN card is also issued especially for financial transactions, opening bank accounts and making investments under the minor's name.' Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Jesus' Tomb Is Opened And Scientists Find Something Unbelievable Novelodge Undo How can minors get a PAN card in India? According to Sanjoli Maheshwari, Executive Director, Nangia Andersen LLP, Minors cannot apply for a PAN card directly on their own. 'The parents, guardians or Representative Assessee have to apply for the minor PAN card.' The procedure for applying for a PAN card can be hybrid, involving both online and offline physical submission in both the situations – minor is NRI living abroad or minor is Indian resident living in India. Alternatively, if you upload all the documents in the required format and size, then the process can be online for Indians resident minors. Live Events 'In both the modes (partial online and totally offline), the copy of originally signed application form along with all the necessary signed documents and minor's photograph would be required to be furnished at the requisite PAN Centre,' says Maheshwari. 'In case of online mode, the same is filled up online on the official website of NSDL and the supporting documents can either be uploaded online or can be sent via offline means to the PAN centre office. Whereas in case of offline procedure, the form is downloaded and filled up manually and all the necessary documents and minor's photograph and deposition of requisite fee are enclosed with the application form,' she says. Maheshwari says that a PAN card issued to a minor can't have the minor's photograph or signature. 'When the minor turns 18, he/she will need to apply for a new PAN card to get a card with his/her photograph and signature, however, the PAN number will remain the same,' she says. Step-by-Step guide on how to apply for Minor's PAN using Form 49A Here's a step-by-step guide on how to apply for Minor's PAN: Step 1: Visit the NSDL website at Step 2: Click on 'New Application' and then select the PAN type as 'New PAN Indian Citizen ' (Form 49A) and the category as 'Individual'. Step 3: Now type in the minor's personal details and parent's details like address and contact number and upload signature of the parent. Once done click on 'Submit'. A new webpage will open which will ask for more details. Provide the details of the Representative Assessee (parent or guardian) who will sign the form on behalf of the minor and upload the photograph of the minor and the required documents. Step 4: Pay the required fees and then click on the 'Submit' button. After successful payment, an acknowledgement number will be issued. 'If opted for physical document verification, send the complete set to the address provided by the chosen service provider (NSDL Protean or UTIITSL) within 15 days of the online application. This deadline is mandatory to avoid rejection of the application,' says Soni. Source: What are the documents required for a Minor's PAN card? The illustrative list of documents required for a Minor's PAN card application are mentioned as under this table: Particulars Minor is Non-Resident Indian, living abroad Minor is Indian Resident, living in India Proof of Identity (any one of the following) Driving License Passport etc,. Aadhaar card Elector's photo identity card Driving License Passport Ration card etc,. Proof of Address (any one of the following) Copy of Bank Account Statement in country of residence or Copy of Non-resident External (NRE) bank account statements (not more than three months old) Aadhaar card Driving license Passport Post office passbook Voter's ID card Domicile certificate Property registration document, etc Proof of Date of Birth (any one of the following) Birth certificate Passport Matriculation Certificate or Mark sheet of a recognized board Domicile Certificate issued by the Government etc,. Birth certificate issued by the Municipal Authority or any office authorized to issue Birth and Death Certificate by the Registrar of Births and Deaths. Aadhaar card Passport Matriculation Certificate or Mark sheet of a recognized board Domicile Certificate issued by the Government etc,. Source: Nangia Andersen LLP 'As such, in case of a PAN card applied for Minor living abroad, the tax authorities may ask consularised documents attested by the Indian embassy in the Country of residence while processing the application,' says Maheshwari. What is the cost of a Minor's PAN card? According to Soni, the application fee costs Rs 107 if the communication address is in India. Here's a table showing the schedule of other charges (including GST): Mode of Application Submission Mode of PAN Card Dispatch Applicable Fee (Rs ) Offline / Online (Physical Mode) Physical PAN card dispatched within India Rs 107 Offline / Online (Physical Mode) Physical PAN card dispatched outside India Rs 1,017 Offline / Online (Physical Mode) e-PAN card sent via registered email ID Rs 72 Online (Paperless / Digital Mode) Physical PAN card dispatched within India Rs 101 Online (Paperless / Digital Mode) Physical PAN card dispatched outside India Rs 1011 Online (Paperless / Digital Mode) e-PAN card sent via registered email ID Rs 66 Source: Tax2Win Important points to note about Minor's PAN card According to Soni, here are some important points to note about Minor's PAN card: The minor should not sign or affix a thumb impression on the application form. The PAN card issued will bear the minor's name and photograph but will be signed by the Representative Assessee until the minor reaches adulthood. Once the minor turns 18, they should apply for changes or corrections in existing PAN data/ . Reprint of PAN card with their signature and updated photograph. Minor's PAN will not contain their signature. Once the child turns 18, a reapplication is required to update the photograph and signature.
Time of India
09-05-2025
- Time of India
Man creates fake mail ID of UP Board to alter results, nabbed
1 2 Prayagraj: The cybercrime police on Friday arrested a man who allegedly created a fake mail ID of Madhyamik Shiksha Parishad and send fraudulent mails to agency engaged in preparing the board results to alter the marks of three said the accused Abhishek Soni (34) of Colonelganj runs a photocopy and online filing shop outside the office of Madhyamik Shiksha created a fake email ID of the UP Board and lured students for marksheet correction and increase in numbers in lieu of was reported that the accused attempted to increase the number of three students by sending an email to the agency engaged in preparing the results. The agency authorities detected the fake mail ID and reported the matter to the cybercrime police station. He was booked under sections 318 (4) and 319 (2) of BNS and sections 66C and 66D of the IT Act. Police also seized three mobile sets and four SIM cards from his possession.
