I am govt employee, i want to know regarding LTC taxation under new regime. In old regime it was non taxable also in public sector under LTA it was taxable when i claim for paid amount however if i produce journey ticket it was non taxable. But under LTC it was taxable for govt employee even i produce journey ticket in new regime.
Ans: Under the new tax regime, LTC/LTA is taxable for employees even if you produce journey tickets.
So, if you want to claim LTC/LTA exemption, you will need to choose the old tax regime. If you choose the new tax regime, you will not be able to claim LTC exemption, even if you produce journey tickets.
Here are some additional things to keep in mind:
• The new tax regime has lower tax rates than the old tax regime. So, even though you cannot claim LTC/LTA exemption under the new tax regime, you may still end up paying less tax overall.
• There are any number of calculators available online including on the Income Tax Dept website which can give you an idea of which regime is beneficial for you in different scenarios.