Supreme Court Latest Judgement on Leave Travel Concession (LTC)
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| Supreme Court Latest Judgement on Leave Travel Concession (LTC) - Exemption of LTC u/s 10(5) on Foregin Travel ? - Whether TDS to be Deducted on LTC-Reimbursements? State Bank of India vs Assistant Commissioner of Income Tax. (CJI UU Lalit, Justices Ravindra Bhat and Justice Sudhanshu Dhulia) Amount received by the SBI employees towards their LTC claims is not liable for the exemption as these employees had visited foreign. The Revenue had held SBI to be an "assessee in default", for not deducting the tax at source of its employees. Back Ground of the Case – SBI vs ACIT SBI Employee availed LTC LTC exempt u/s 10(5) taking a circuitous route of Delhi- Madurai- Columbo- Kuala Lampur- Singapore- Columbo- Delhi and his claim was fully reimbursed by the appellant and no tax was deducted under Section 192(1) for the same. Assessing Officer CIT (A), ITAT Leave Travel Concession (LTC) claims is not liable for the exemption as these employees had visited foreign countries which is not permissible under the Law. have the same view that the appellant as an assessee in default for for not deducting TDS of its employees. SBI Moves to Delhi High Court against the order of ITAT. Delhi High Court dismissed the appeal filed by the appellant and upheld the order passed by the Income Tax Appellate Tribunal (ITAT), holding the appellant as an assessee in default for for not deducting TDS of its employees. It was held that the amount received by the employees of the assessee employer towards their LTC claims is not liable for the exemption as these employees had visited foreign countries which is not permissible under the law. SBI moves to Supreme Court against the order of Delhi High Court. The Supreme Court has observed that Leave Travel Concession (LTC) is not for foreign travel and is meant for travel within India. The moment employees undertake travel with a foreign leg, it is not a travel within India and hence not covered under the provisions of Section 10(5) of the Income Tax Act. The court dismissed the appeal filed by State Bank of India against the Delhi High Court judgment which held that the amount received by the SBI employees towards their LTC claims is not liable for the exemption as these employees had visited foreign. The Revenue had held SBI to be an "assessee in default", for not deducting the tax at source of its employees. CLICK ON THE LINK TO WATCH THE VIDEO, https://youtu.be/90mMEQ6wjC8 |
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