Hi friends, next topic we will cover is leave travel
concession.
Leave travel concession.
What did I say?
If you travel somewhere and your employer gives you a
concession, gives you some money for travelling, in that
case, what will be taxable and what will be exempt?
In the hands of the employee, we will now start our
discussion on this.
First tell me, can an employer give money to his employee
for travelling?
Answer is yes.
An employer can give anything to his employee.
He can give land on the moon.
What do we have to check?
We just have to check what is the taxability and what is
the exemption.
For example, let me make it a little interesting.
This is an employer and this is his employee.
Who is he?
Everyone must know.
Just see who he is.
This is Uday Shetty and Majnu Bhai.
Uday Shetty tells his Majnu Bhai that Majnu, you look very
worried.
Majnu Bhai says, Uday Bhai, I work a lot.
I am very worried.
Uday Bhai says, do one thing.
Travel somewhere.
Majnu, you have done a lot of work.
You got Sanjana married.
Go and travel.
Majnu Bhai goes to travel with his family.
When he went to travel with his family, Uday Bhai gave him
tickets.
Take this ticket and travel.
Or it is possible that he did not give the tickets.
He gave some money.
Take this money and travel.
Majnu Bhai said, thank you Uday Bhai, thank you very much.
In that case, what will be the taxability?
This is what we are discussing.
If the employer sends his employee to travel, what is
taxable and what is exempt in the hands of the employee?
What will happen in this case?
Friends, if the employee goes to travel by air, for
example, Majnu Bhai went to travel to South Africa with his
family.
In this case, what will be its exempt?
Or what will be its actual expense?
Actual expense or the fare of the economic class.
Whatever will be less among the two will be exempt.
Actual expense or the fare of the economic class.
Whatever will be less among the two will be exempt.
Suppose, the actual expense is Rs. 1 lakh and the fare of
the economic class is Rs. 70,000.
What will be its exempt? Rs. 70,000.
Rs. 30,000 is taxable.
This is the case of the economic class.
Majnu Bhai is a very rich man and Uday Bhai is also a very
rich man.
In that case, why is he giving him from the economic class?
He can also go from the business class.
Majnu Bhai can also go from the business class to travel.
The government has said that no matter how rich you are,
you can go from the business class, or you can go from the
business class, or you can go from any class, or you can go
from your private jet.
It doesn't matter to us.
We will give you the economic class or the actual class,
whichever is less.
Is the point clear?
Now, let's come to the next point.
In this case, where does it say?
South Africa, Majnu Bhai.
In the second case, Majnu Bhai says,
Uday Bhai, I will go to Nagpur.
I will go to Nagpur.
Now, suppose he is saying that he will go to Nagpur.
So, from where will he go to Nagpur?
He will go by train.
So, in the case of train, what exemption will he give?
It is a simple thing.
The actual expenditure, or the actual, or the AC first
class, whichever is less.
Actual, or AC first class.
The rent of AC first class, or the actual, whichever is
less.
But when?
When Majnu Bhai will go by train.
The train service runs, he will go by train.
So, in that case, what will we do?
Taxable or exempt?
We will do this.
Exempt.
Come, next.
Suppose, in this case, Majnu Bhai says,
Uday Bhai, I will go to Sholapur.
At this time, where is he going?
Sholapur.
Sholapur is a place where trains do not go.
Now, when my train is not going there, how will I go there?
This is a very important question.
How to go?
When the train is not going, how to go?
The railway facility is not available there in that case.
In that case, the government said,
Look, if the railway facility is not available, does the
bus run there?
Is there a recognised transport system of that area?
You want to go to Sholapur from Mumbai.
Some bus must be running there.
He said, yes, it is running.
So, from where will you go?
Okay, let's go by bus.
So, in that case, what will we exempt?
Actual expense?
Or the rent of the deluxe class bus?
Which of the two will be less?
In whose hands will it be exempted, sir?
In the hands of Majnu Bhai, it will be exempted.
Come, let's see what this point says.
Rail service is not available.
And public transport, but public transport exists.
Which was this? Sholapur.
He was going to Sholapur.
What happened in the case of Sholapur?
When the bus was going,
So, simple.
Amount not exceeding first class, yet deluxe class fare, by
the shortest route to the place of destination.
Actual expense, or the fare of deluxe class, the rent of
deluxe class, which of the two will be less, in the hands
of Majnu Bhai, it will be exempted.
Come, next point.
Assume that the transport facility was not available in
that case.
In that case, Majnu Bhai was supposed to go to such a
place, where neither the train goes, nor a bus goes there.
Neither a train, nor a bus.
So, poor Majnu, how will he go?
It is possible that he will take his own car and go.
Or someone else will take a taxi and go.
So, in that case, the employer is giving him money.
So, how much will be exempted in the hands of Majnu Bhai?
In the hands of Majnu Bhai, it will be exempted.
Actual expense, or the fare of deluxe class, whichever is
less.
If you compare the actual expense, the fare of deluxe
class, whichever is less, in the hands of Majnu Bhai, it
will be exempted.
This is it, friends.
A simple point.
The employer is telling his employee to go, relax, go on
holidays, and take some money.
So, what was to be taxable in the hands of the employee?
What was to be exempted?
Whatever we have read, all this was exempted.
If you go by air, then the actual, or the fare of economy
class, whichever is less.
If you go by train, then the actual, or the fare of AC
first class.
And if you go to a place where there is no train facility,
but there is a transport system, then the actual, or the
fare of deluxe class, whichever is less.
And where there is no transport system, there is no bus as
well.
So, if you compare the symbols, the fare of railway first
class, and the actual, whichever is less.
Suppose, in this case, this brother Majnu, he has a wife as
well.
His wife's name is Majni.
So, Majnu and Majni, can they go somewhere?
Or will Majnu only get this facility?
Sir, in this case,
Majnu, Majni, and Majnu's younger son, Majnu 1, and Majnu's
younger son, Majnu 2, both, four can go in this case.
Husband, wife, and children can take this facility.
The employer can take this facility with his wife and two
children.
But, don't take it every 6 months, or every other month.
The government has said, in the four-year block, you can
avail this facility only twice.
Leave travel concession.
This was the point, friends.
Is the point clear?
This is what I am trying to do, to make things easier for
you.
You must be thinking, why do you keep showing movies,
Uday Bhai, Majnu Bhai, Jethalal.
But, friends, let me tell you,
I try to teach you through images.
We forget things, but we never forget images.
This is an image.
You will always remember these images, when you talk about
leave travel concession, of Uday Bhai and Majnu Bhai.
So, friends, mostly, if we talk, our chapter is almost
finished.
Only 5-7 minutes of perquisites are left.
After that, this chapter will be finished.
Important allowances, important perquisites, we have
covered all of them, which required explanation.
Now, there are some small allowances, small perquisites, we
will discuss them.
We will discuss them for 5-7 minutes.
After that, our chapter will be finished.