 "LTCG, Ulips, insurance, equity, MF, mutual funds, growth, cash, Unit Linked Insurance Plans, investments, health,")
A recent judgement by the Supreme Court (SC) has underlined the point that Leave Travel Concession (LTC) can be offered only on travel within India. If the trip involves a foreign leg, the employer must deduct TDS (tax deducted at source) on this payment.
In State Bank of India (SBI) versus Assistant Commissioner of Income Tax, employees of SBI undertook trips that started and ended in India. En route, however, they also visited foreign countries. One employee, for instance, undertook the following journey: Delhi-Madurai-Colombo-Kuala Lumpur-Singapore-Colombo-Delhi. The SBI paid LTC to such employees without deducting TDS.
The SC dismissed SBI’s appeal
