Professional Updates

We can claim LTA without actual travel. Yes, you heard it right!! Many of us have not been on travel due to the pandemic. But we can still claim the LTA for the financial year 2020-21. Here is how..... Let us first understand the provisions under Section 10(5) of Income Tax Act,1961 relating to claiming Leave Travel allowance exemption by an employee. An employee is allowed tax exemption on the travel allowance received as part of salary.  Conditions: Travel should be domestic. Travel cost of self,spouse,2 dependent children, dependent parents,sisters and brothers will alone be allowed. Travel can be done through air,rail or road. Expenses relating to sightseeing, food, accommodation etc CANNOT be claimed. Travel expenses of any 2 journeys performed during the block of 4 calendar years can be claimed as deduction. Current block is 2018-2021. In case of underutilized LTA during a calendar year,  the unveiled LTA can be carried forward to next block and can be utilized in the fi...

This post brings out discussion on few of the points from the budget,2021 that might be a matter of interest to us. As a further measure which directly benefits Start-ups and  Innovators, I propose to incentivize the incorporation of One Person  Companies (OPCs) by allowing OPCs to grow without any restrictions on  paid up capital and turnover, allowing their conversion into any other type  of company at any time, reducing the residency limit for an Indian citizen to  set up an OPC from 182 days to 120 days and also allow Non Resident  Indians (NRIs) to incorporate OPCs in India. This amendment encourages the NRIs to incorporate One Person Company in India. Also the amendment relaxes the period of stay in India to 120 days to determine the residential status to be eligible for an NRI to incorporate OPC. I propose to consolidate the provisions of SEBI Act, 1992,  Depositories Act, 1996, Securities Contracts (Regulation) Act, 1956 and  Government ...