A globe trotter like me is always planning a trip but cannot execute due to budget constraints.
Are we sailing in the same boat?
Then let me share some tips to save for your travel bucket list!
Grab Income Tax Exemption On Your LTA (Leave Travel Allowance)
Leave Travel Allowance, as you might know, is given to salaried employees on actual domestic travel expenses within India. Now, remember that the LTA exemption is on the actual spending on the fare, which means if no journey is undertaken, the exemption would be zero.
The maximum exemption for different modes of travel are as follows:
Air: Exemption amount cannot be more than the economy class fare of Air India on that route.
Train: Exemption amount cannot be more than AC first-class fare.
Others: Exemption amount equal to AC first-class rail fare.
So, take public transport instead of other modes to save more!
Availing your LTA exemption is a great way to make your travel cost-effective, especially if you travel with your family. For calculation of LTA, the fares of spouse, kids, parents, and siblings are also considered.
So, the more the merrier, isn’t it?
You can also opt for a Travel Savings Account. It is an account in a bank that has a tie-up with a travel planner. You select a tour plan and start saving. You can avail of the tour once you have saved enough for it in your account.
Being wise when it comes to your tax savings and financial management is the best gift you can give to the traveller in you. Do your research before making any financial decision, avoid pitfalls and traps and set the explorer in you free!
So, Get, Set, Go. Save taxes and travel to your dream destination.