Feb 7, 2011

MQ Awards for FINANCIAL STUPIDITY 2010 (MQ-FSA 2010)


"We are all born ignorant, but one must work hard to remain stupid"__Benjamin Franklin

When every publication and media outlet under the sun is instituting awards for recognizing excellence in one area or the other, I also thought of starting the awards but with a difference…the prestigious awards are meant for individuals and institutions contributing significantly to the cause of financial stupidity rather than excellence. The Awards theme is ‘Great Indian Scam Bazaar’.

Warning: The Awards have received ‘A’ Certificate from the Censor Board of India, so if you’re younger than 18, please don’t waste your time here…you can find plenty of other stupid stuff on the net.

The winners are selected by an eminent jury comprising of financial
wizards: Mr. Rajesharma, the SMD of Money Tree Financial Services Ltd (MTFSL), who succeeded in raising around Rs 400 crore via QIP issue by fooling FIIs—Who’s Who of Wall Street—including Goldwoman Sachaa Soda and Moorgi Stanley; Mr. Rama Rajoo—ban na paaya gentlemen— of Satyam Shivam Sundaram, world famous for riding a tiger; and the late Shri Shri Harsh Mahatma ji—the Big Bull—who was back to earth on a few days holiday to enjoy the scam season.

So, dear friends, hold your breath! I’m just going to announce the first time winners of ‘MQ Awards for FINANCIAL STUPIDITY 2010’ (MQ-FSA 2010):

Feb 2, 2011

How to Claim LTC / LTA Tax Exemption


Enough of jokes about LTA, it is time to write some serious stuff and sincerely answer and resolve your various doubts regarding this mysterious LTA / LTC tax provisions. Here I go:

Income tax allows you tax benefit called leave travel concession (LTC) or leave travel allowance (LTA) for touring and holidaying in India. Section 10(5) of IT Act 1961 read with rule 2B of Income Tax Rules grants you tax exemption for proceeding on leave to any place in India. So what exactly is LTA / LTC and what kind of journey is allowed? What kinds of expenses are allowed for tax purpose? Who can accompany you during the trip? How frequently
you can