leave travel allowance mandatory

AI Summary to Minimize your effort

Leave Travel Allowance (LTA) - Exemption Limit, Rules, How to Claim, Eligibility & Latest Updates

Updated on : Jun 27th, 2024

The Income-tax Act, 1961 offers salaried individuals several tax exemptions, beyond deductions like LIC premiums and housing loan interest. While deductions reduce your total taxable income, exemptions exclude specific types of income from being taxed altogether. This allows employers to design an employee's Cost to Company ( CTC ) package in a tax-efficient manner.

One such exemption available to the salaried class under the law and widely used by employers is Leave Travel Allowance (LTA)/Leave Travel Concession (LTC). LTA exemption is also available for LTA received from former employer w.r.t travel after the retirement of service or termination of service. LTA can be claimed for any two years in a block of 4 calendar years . The current block year for claiming LTA is 2022 to 2025.

Note: The tax exemption of leave travel allowance is not available in case you choose the new tax regime .

What is Leave Travel Allowance (LTA)?

Leave Travel Allowance/Leave Travel Concession is a type of allowance given by an employer to their employee for travelling to any place in India: either on leave, after retirement or after the termination of his service. Though it sounds simple, many factors need to be kept in mind before you plan to claim an LTA exemption. Income tax provision has laid down rules for claiming exemption of LTA which are provided below.

Note: The red arrow shows the lower of the two amounts will be exempted. For instance, if you travel by air, the exemption amount will be either your actual travel costs or the cost of an economy class ticket, whichever is lower. The journey should be taken through the shortest route to the destination.

Who Can Claim LTA?

Only individuals (citizens and non-citizens) can claim LTA for travel costs incurred for themselves and their family (Spouse, children, wholly or mainly dependent siblings, parents)

Conditions for Claiming LTA

Let us understand the conditions/requirements for claiming the exemption:

is a must to claim the exemption
Only domestic travel is considered for exemption, i.e., travel within India. No international travel is covered under LTA/LTC
The exemption for travel is available for the employee alone or with his family, where ‘family’ includes the employee’s spouse, children and wholly or mainly dependent parents, brothers, and sisters of the employee.
Further, such an exemption is not available for more than two children of an employee born after 1 October 1998. Children born before 1 October 1998 do not have any restrictions. Further, in cases of multiple births on a second occasion after having one child is also not affected by this restriction.
Valid Proof of travel is essential to claim the exemption.

Amount of LTA/LTC Exemption

The exemption is available only on the actual travel costs i.e., the air, rail or bus fare incurred by the employee. No expenses such as local conveyance, sightseeing, hotel accommodation, food, etc., are eligible for this exemption. The exemption is also limited to LTA provided by the employer.

For example, if LTA granted by the employer is Rs 30,000, and the actual travel cost incurred by the employee is Rs 20,000, then only Rs 20,000 will be available as an exemption and the balance of Rs 10,000 would be included in taxable salary income.

Exemption w.r.t Various Modes of Transport

Can lta exemption be claimed on every vacation.

No, an LTA exemption is available for only two journeys performed in a block of four calendar years .

A block year is different from a financial year and is decided by the Government for LTA exemption purposes. It comprises 4 years each. The very first 4-year block commenced in 1986. The list of block years is 1986-1989, 1990-93, 1994-97, 1998-2001, 2002-05, 2006-09, 2010-13 and so on. The block applicable for the current period is 2022-25. The previous block was the calendar year 2018-21.

Carryover of Unclaimed LTA/LTC

In case an employee has not availed exemption with respect to one or two journeys in any of the block of 4 years, he is allowed to carryover one such unavailed LTC exemption to the next block provided he avails this benefit, in the first calendar year of the immediately succeeding block.

Consider the below example for a better understanding:

• Where carry over exemption is claimed in the first calendar year of the immediately succeeding block

• Where carry over exemption is not claimed in the first calendar year of the immediately succeeding block

Procedure to Claim LTA

The procedure to claim LTA is generally employer specific. Every employer announces the due date within which LTA can be claimed by the employees and may require employees to submit proof of travel such as tickets, boarding pass, invoice provided by travel agent etc., along with the mandatory declaration. Though it is not mandatory for employers to collect proof of travel, it is always advisable for employees to keep copies for his/her records and also to submit them to the employer based on the LTA policy of the company to tax authorities on demand.

Multi-Destination Journey

Income tax provision provides exemption w.r.t travel cost incurred on leave to any place in India. Conditions pertaining to the mode of transport also refer to the place of ‘origin’ to the place of ‘destination’ and the route which must be the shortest available route.

Hence, if an employee travels to different places in a single vacation, the exemption can only be availed for the travel cost eligible from the place of origin to the farthest place in the vacation by the shortest possible route.

LTA Exemption for Vacation on Holidays

Many organisations that go strictly by the wordings of the income tax provision are allowing employees to claim LTA only if the employee applies for leaves and travel during that time. Such organisations may reject LTA claims for travel on official holidays or weekends.

Also read about: Basic Salary UAN Login Last Date to File ITR Section 115BAC of Income Tax Act Income Tax Deductions List How to e verify ITR Annual Information Statement (AIS) Section 80D Home Loan Tax Benefit House Rent Allowance (HRA) Budget 2024 Highlights

Frequently Asked Questions

The amount of LTA/LTC exemption depends on the LTA/LTC component in your compensation package or CTC. You can furnish proof of travel within the block period and claim up to the amount prescribed in your CTC.

The latest block period of four years is from 1 January 2022 until 31 December 2025.

You can claim LTA/LTC exemption only for one trip in one calendar year.

You can claim LTA/LTC benefit for the travel costs of yourself and your family consisting of your spouse, children, dependent parents, brothers, and sisters of the employee.

No, LTC is taxable in case of new tax regime and exempted if chosen to pay tax under old tax regime by fulfilling the required criteria.

Exemption will be available in respect of 2 journeys performed in a block of 4 calendar years.

Yes, you can avail LTC in current block (2022-2025), if you have not availed LTC in previous block. (2018-2021). Where such travel concession or assistance is not availed by the individual during any block of 4 calendar years, one such un-availed LTC will be carried forward to the immediately succeeding block of 4 calendar years and will be eligible for exemption.

Below example gives you clear understanding :

Example : An employee does not avail any LTC for the block 2018-21. He is allowed to carry forward maximum one un-availed LTC to be used in the succeeding block of 2022-25. Accordingly, if he avails LTC in April, 2023, the same will be treated as having availed in respect of the block 2018-2021. Therefore, he will be eligible for exemption in respect of that journey and two more journeys can be further availed in respect of the block of 2022-25.

Illustration : Mr. D went on a holiday on 25.12.2023 to Delhi with his wife and three children (one son – age 5 years; twin daughters – age 3 years). They went by flight (economy class) and the total cost of tickets reimbursed by his employer was 60,000 (45,000 for adults and 15,000 for the three minor children). Compute the amount of LTC exempt if Mr. D chose to pay taxes under old regime.

Solution : Since the son’s age is more than the twin daughters, Mr. D can avail exemption for all his three children. The restriction of two children is not applicable to multiple births after one child. The holiday being in India and the journey being performed by air (economy class), the entire reimbursement met by the employer is fully exempt in the hands of Mr. D, since he chose to pay taxes under the old regime.

In the above illustration, will there be any difference if among his three children the twins were 5 years old and the son 3 years old?

Since the twins’ age is more than the son, Mr. D cannot avail for exemption for all his three children. LTC exemption can be availed in respect of only two children.

Taxable LTC = 15,000 × 1/3 = 5,000.

LTC exempt would be only 55,000 (i.e. 60,000 – 5,000).

No LTA/LTC exemption would be allowed if the employee does not travel along with the family.

About the Author

Ektha Surana

Multitasking between pouring myself coffees and poring over the ever-changing tax laws. Here, I've authored 100+ blogs on income tax and simplified complex income tax topics like the intimidating crypto tax rules, old vs new tax regime debate, changes in debt funds taxation, budget analysis and more. Some combinations I like- tax and content, finance & startups, technology & psychology, fitness & neuroscience. Read more

Quick Summary

Was this summary helpful.

Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.

Efiling Income Tax Returns(ITR) is made easy with Clear platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.

CAs, experts and businesses can get GST ready with Clear GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. Clear can also help you in getting your business registered for Goods & Services Tax Law.

Save taxes with Clear by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download Black by ClearTax App to file returns from your mobile phone.

Cleartax is a product by Defmacro Software Pvt. Ltd.

Company Policy Terms of use

Data Center

SSL Certified Site

128-bit encryption

Leave Travel Allowance (LTA): A Comprehensive Guide To Tax Benefits, Eligibility, Claims And Exemptions

by SMCIB on Friday, 30 August 2024

Imagine you are going on a family holiday. You first book your train tickets for Kerala to enjoy its calm backwaters, then move to the historical palaces of Rajasthan, and, at last, end your trip in the serene landscapes of Himachal Pradesh. Along with all the fun of planning and packing, there’s an unexpected surprise: your employer may end up sponsoring a portion of your trip through Leave Travel Allowance(LTA).

Quite fascinating, no?

This incentive comes with acute advantages comes with tax benefits, which will surely make your travels cheaper and financially astute.

If you're an experienced traveller or someone who rarely gets time off, LTA is a perfect reward to get out and explore the diverse landscapes in India, from the hectic streets of Mumbai to the tea gardens of Darjeeling.

In simple terms, understanding LTA can change the perspective of a routine-sounding mundaneness of your salary package into a thrilling opportunity to save and, while doing so, add great value to your life with travel treats. The Leave Travel Allowance is supposed to provide a financial cushion so that such journeys do not stain heavily on the pockets. Essentially, it ensures you take leave from work in order to rejuvenate yourself while coming back more productive. As we go into the nitty-gritty of the LTA, you will realise that this allowance is much more than just a simple tax-saving tool, for it opens the doors to new and mesmerising experiences.

Let's embark on the journey ahead and find out more: the workings of LTA, its benefits, and how best to maximise them!

What Is Leave Travel Allowance (LTA)?

Leave Travel Allowance (LTA) or Leave Travel Concession is nothing but what employers grant to their employees in lieu of travel expenses incurred by them to any place within the country either on leave, or after retirement, or after the employment termination. Though the definition or the concept sounds simple, there are several factors that one must take care of while planning for an exemption being claimed on LTA.

Why Is LTA Important?

Leave Travel Allowance (LTA) forms part of the compensation package for an employee since it reduces taxable income. LTA is what an employer gives to their staff to meet their travel expenses. An employee may claim LTA for two journeys in any block of four years. Though this allowance, under Section 10(5) of the Income Tax Act, is exempted from tax, certain conditions must be met to satisfy that requirement.

Having a break always sounds exciting, doesn’t it? So, let’s move on to the criteria to be met so you can benefit from this grant!

What Is The Eligibility For LTA Exemption?

For LTA exemption, it is mandatory that the allowance that actually needs to be exempted is determined by the actual travel expenses incurred.
The exemption relates to the cost of tickets for transport from the place of origin of the employee to the destination and back, by the most efficient and shortest route whether by air, rail or bus.
It is important to remember that any other expenses like sightseeing, accommodation, shopping, food expenses or similar other expenditures shall not be allowed as LTA exemption.
If the LTA given by the employer is less than the total travel expenditure, then the exemption amount would be equal to the employer’s provided LTA amount.

Do you fit into the category? Let’s find out.

Who Can Claim LTA?

Leave Travel Allowance(LTA) can be claimed only by individuals, whether citizens or non-citizens, against travel expenses incurred by them and their immediate family, including spouses, children, dependent siblings, and parents.

Almost everything in the world works on terms and conditions. So, why would this be any different?

Conditions For Claiming LTA

To claim a Leave Travel Allowance (LTA) exemption, the following prerequisites must be met as per Section 10(5) of the Income Tax Act and Rule 2B:

Inclusion in Salary Structure: LTA must form part of an employee's remuneration package, that is, be considered as part of their pay structure.
Domestic Travel Only: This exclusion relates only to cost actually spent on travel that is local and includes the employee and the members of their immediate family.
Spouse and children
Dependent siblings and parents of the employee
Children Limitation: The exclusion covers up to a maximum of two children born after the 1st of October in the year 1998. However, there are no restrictions for children born before that.
Covered Costs: Furthermore, the expenditure that is allowed under this exemption has to be only for travel through rail, air or other mode of public transportation. It does not raise money for overhead costs such as the cost of accommodation in hotels, food or any other expense that does not involve travel.
Trip Limit: An exemption for two trips within four calendar years is allowed. The block in question is 2022–2025.
Carry Forward: If the exemption is not availed during the block period, it can be used in the next block, and the claim can be made in the first year of the next block.

Planning to avail the grant as soon as possible? Let’s have a breakdown of the process for the same!

How To Claim LTA?

Here’s a stepwise guide for you to follow and claim your much-needed vacation:

Plan Your Travel: Choose your destination and the means of transport, keep in mind that this allowance pays only for domestic transportation.
Notify Your Employer: Make sure to communicate the travel plans and the schedule of the planned absence to your employer.
Submit Proof of Travel: Finally, you will need to show evidence that you have travelled, such as the tickets and boarding passes and receipts for travel expenses, among others, to your employer.
Complete and Submit the Claim Form: This form should be properly completed and should be duly accompanied by relevant travel documents that need to be submitted to the employer for LTA claim.

You might be wondering what amount is actually exempted. Don’t worry. We are here to resolve any query that crosses your mind!

Amount Of LTA/LTC Exemption

The LTA/LTC exemption applies only to the fares actually incurred by the employee by air, rail or bus. The local conveyance, expenditure on sightseeing, hotel accommodation, and food are not considered for exemption. Moreover, the exemption is limited to the sum of LTA granted by the employer. Say, if the employer provides an LTA of ₹40,000 and the expenditure actually incurred for that employee comes to ₹25,000 on travel alone, the exemption can be claimed only up to ₹25,000. The remaining ₹15,000 would form a part of taxable salary income.

Ever seen a policy or allowance without rules and regulations? So, how can this be an exception ?

Leave Travel Allowance Exemption Rules For Various Modes of Transport

Air Travel: The exemption is the lower of:
Real out-of-pocket costs
Standard air ticket from the national airline, either Indian Airlines or Air India, for the shortest conceivable journey to the destination.
If Rail Service is Available: The exemption is the lower of:
The actual amount of travel.
A/C First Class rail fare for the shortest route to the destination.
If Rail Service is Not Available:
No Recognized Public Transport System: The exemption is the lower of:
Out-of-pocket expenses
First class rail fare if the trip could have been completed by rail using the shortest timetable.
Recognised Public Transport System Exists: The exemption is the lower of:
-Actual travel costs
-First class or deluxe class fare for the shortest way to the destination.

Unclaimed LTA

LTA exemption is generally allowed for two journeys in a block of four years. If the employee does not utilise both journeys, then that one journey can be transferred forward to the next four-year period. To be entitled to this carryover, the employee has to make a trip in the first calendar year of the new block of trips. In case the LTA is not used in the given timeframe, it expires, thereby abolishing its further use.

Can LTA Exemption Be Claimed On Every Vacation?

Here also LTA can be exempted for two trips within a block of four calendar years only. It should, however be noted that this is the current block period which is from 2022 to 2025. It must be highlighted that once an exemption is not used in a block, it cannot be transferred to another block.

Is LTA Exemption Available In The New Tax Regime (2024-2025)?

The latest fiscal year in which LTA may be claimed is the block year 2022-2025. Note: If you opt for the new tax regime, the tax exemption for the leave travel allowance is not permitted.

What if you change your job? What happens then? No need to panic. We've got you covered with answers!

Claiming LTA In Case Of A Job Change

When changing jobs, an employee can claim LTA exemption under the following conditions:

Unutilized LTA Balance: Any balance of LTA that the employee had when leaving the previous employer can be transferred to the new employer, provided one moves within the same block of four years.
Already Claimed LTA: Also, when LTA has been claimed from an earlier employer, it cannot be claimed for the same journeys from the new employer again.

Claiming LTA For Multi-Destination Journey

The income tax provisions regarding LTA exemption only relate to travel expenses within India's territory and from the starting point to the destination in the shortest possible way. In cases where an employee visits several places in one trip, only the travel expense from the starting point to the place that is farthest from the said point, following the shortest route, shall be exempted.

Talking about travel and leaves, have you ever considered buying travel insurance to secure your trip?

LTA Exemption For Vacation On Holidays

According to the guidelines provided under the Income Tax Act, LTA is generally provided only to an employee if they go on leave from work and travel during the leave period. In general, any travel that is made during the holidays is not considered and, therefore, is not exempted from LTA computation. However, organisational policies may vary: while some firms may allow the taking of LTA exemptions during holidays others may not.

Without proofs there is no way to get exemption. Therefore, here we are to help you with the necessary requirements.

Required Documents For Claiming Tax

To claim LTA exemption, you need to provide the following documents:

Travel Tickets: Tickets for air, rail or bus commute.
Boarding Passes: For air travel, proof of the journey is the boarding pass.
Travel Bills: Receipts showing the amount spent during the travel.
Claim Form: The LTA claim issued by your employer is filled and completed by you.
Proof of Leave: Any documents to prove that you were on leave during such a period (if such was the case).
Identity Proof of Family Members: Document proving relationship with other family members with you, for instance, marriage certificate, birth certificates of the children.

Benefits Of LTA

Leave Travel Allowance (LTA) is one of the components of the salary structure that relates it to tax exemptions. Here’s how LTA benefits you:

Tax Savings: LTA permits you to consider travelling fares or tickets for travel within India and, therefore, exempts you from paying tax on the fares or tickets. Expenditures for accommodations and other expenses will not be funded.
Lowered Taxable Income: Employees can reduce their taxable income by presenting bills for transportation by bus, train, aeroplane, or any other mode of transportation.
Salary Structure: LTA is considered part of the package and adopted in relation to the job description, rank, and remuneration level.
Eligibility: All LTA-related benefits are available only in cases if they are provided as a part of the pay package. They can be made individually or with family members.
Family Coverage: LTA extends to include travelling with the family members involving parents, siblings, spouses and children.

Factors To Consider Before Claiming LTA

Before claiming your Leave Travel Allowance (LTA), keep these key factors in mind:

Eligibility: It is also important for you to ensure that you satisfy all regulatory requirements for LTA claims.
Documentation: Save all your travelling bills and other evidence in support of your travel expenses since travel expense records will be needed.
Timeliness: You should be sure to submit your LTA claim within the relevant block period if you would wish not to lose any exemption entitlement.

Wrapping Up!

An overview of what LTA entails could help make the world a travel destination and save tax in the process. Regardless of whether you are on a relaxed train trip across the territories of India or travelling to a noisy city, you will get a wonderful chance to discover the country without overburdening your wallet with the help of LTA. Thus, using LTA can become a way to have exciting experiences and create valuable memories.

1. Can LTA be directly claimed in the ITR if a proof is not submitted to the employer earlier?

If you have missed the deadline to submit proof of expenses or allowances to your employer, whatever is eligible may still be claimed by you while filing your ITR. However, claiming Leave Travel Allowance directly in your ITR could be a bit challenging as your employer is supposed to deduct taxes after considering the proof you submitted.

More importantly, any mismatches in Form 16 issued by your employer and the claims in ITR would be a matter of concern for the Income Tax Department and may result in a notice. The claims in the ITR should match the information in Form 16 to keep themselves away from such complications.

2. Can LTA be claimed for air travel on one side?

First, you have to see your company's LTA policy to find out whether you can avail yourself of LTA for one-way air travel. Some employers may specify that only round-trip journeys can be availed of for reimbursement under the LTA. Again, according to income tax law, the exemption in LTA is available only on round-trip journeys. You have to ensure that your claim is according to your company's policy as well as the tax law.

3. Under which section of the Income Tax Act is an exemption for LTA allowed?

LTA exemption is allowed under Section 10(5) of the Income Tax Act, 1961.

4. What if the boarding pass is lost? Can LTA be claimed?

In the event that the boarding pass is misplaced, the LTA is still claimable. However, the exemption in such cases depends on the employer's policies and the availability of alternative supporting documents. Other travel proofs can be accepted by the employer, but it is their discretionary option.

5. Is it possible to receive two LTA exemptions in a single fiscal year?

Exemption under LTA is available only once in a financial year. Even if you undertake two journeys in the same financial year, an exemption shall be available for only one of them. However, exemption is allowed for up to two journeys in a block of four years.

Get Quotes for Insurance

Insurance knowledge videos.

Insurance Policy KYC | Mandatory KYC Requirement by IRDAI for Insurance Policy Purchase

Demystifying Health Insurance: Exploring Policy Meaning and Coverage Options

Health Insurance

Types of Health Insurance
Critical Illness Insurance
Family Health Insurance
Health Insurance for NRI
Health Insurance Calculator

Motor Insurance

Car Insurance Calculator
2nd Hand Car Insurance
Comprehensive vs Zero Dep
Third Party Insurance
No Claim Bonus

Life Insurance

Compare Term Insurance
Term Insurance Renewal
Term Insurance Rider
Types of Term Plans
Family Life Insurance Plans

Network Hospitals

HDFC ERGO Network Hospitals
FUTURE GENERALI Network Hospitals
BAJAJ Allianz Network Hospitals
ADITYA BIRLA HEALTH Network Hospitals
Universal Sompo Network Hospitals

Cashless Garages

HDFC ERGO Cashless Garages
ICICI Lombard Cashless Garages
IFFCO TOKIO Cashless Garages
United India Cashless Garages
Godigit Cashless Garages

SMC Insurance Brokers Pvt. Ltd. Parsvnath Metro Mall, Near Pratap Nagar Metro Station, Pratap Nagar, New Delhi-110007 Registration No: 289 , Registration Code No: IRDAI/DB-272/04/289, Valid till: 27/01/2026 , License category: Direct Broker (Life & General) , CIN: U66000DL1995PTC172311 Insurance is the subject matter of solicitation. Visitors are hereby informed that their information submitted on the website may be shared with insurers. Product information is authentic and solely based on the information received from the Insurer.

Written by admin • December 21, 2023 • 11:08 am • Payroll Management

Leave Travel Allowance (LTA) – Rules, Claims, Exemption and Eligibility

Table of Contents

Leave Travel Allowance (LTA) is a financial benefit for all employees. It helps cover domestic travel expenses for two trips in a block of four financial years. The LTA amount is tax-free. It is one of the best tax-saving tools available to an employee. It is a tax exemption employers offer to their employees.

What is Leave Travel Allowance (LTA)?

Leave Travel Allowance is an allowance employers offer their employees for domestic travel. This allowance allows employees to take a vacation where travel costs are tax-free. LTA is available for any two years within a four-year block. Employees must submit the bills and travel documents to their employer to take advantage of the LTA tax benefit.

People who can Claim Leave Travel Allowance (LTA)

Only employees and their spouses, children, dependent siblings and parents can claim LTA. This exemption does not apply to more than two of an employee’s children if they are born after October 1 1998.

Rules for Claiming LTA

The rules for claiming LTA are as follows:

LTA does not cover international travel. Employees can only use domestic trips to make the claim.
The employee’s family members are also allowed to use LTA to cover the cost of their travel. The family members for this purpose include spouses, up to two children(if born after October 1 1998), dependent parents and siblings.
The employee’s salary structure must mention the LTA.
Only the cost of travel is taken into consideration for tax exemption. No other expenses like hotel accommodation, food, or shopping qualify for this exemption.
An employee can claim LTA two times in a block of four years.
LTA can be claimed for travel by any mode of transport, like air, train, or road.
If LTA isn’t claimed in a particular block of four years, it can be carried over to the next block.

Eligibility for Leave Travel Allowance (LTA)

Only the cost of travel of an employee is eligible for claiming LTA. Expenses such as local sightseeing, hotel accommodation, food, shopping, etc., are not eligible for this exemption. If the LTA provided by the employer is less than the actual cost of travelling, the exemption will be limited to the LTA amount specified by the employer rather than the actual cost.

For example, if the employer offers an LTA of Rs. 25,000 and the employee’s travel costs Rs. 35,000, an LTA exemption can only be claimed for Rs. 25,000.

LTA Exemption for Various Modes of Transportation

Travel by air: If an employee travels by air, the exemption would be the economy class airfare by the shortest route to the travel destination.
Travel by train: If an employee travels by train, the exemption would be the fare of an AC first-class train ticket for the shortest route.
Travel by other modes of transportation: If the destination is not connected by air or train, the exemption would be the fare of an AC first-class train ticket for the distance of the journey for the shortest route, whether connected by train or not.

LTA for Multi-Destination Trips

If an employee goes on vacation and visits multiple cities, in that case, the exemption will cover the cost of round-trip travel from their home city to the farthest city they visit and back. In other words, the LTA will cover the most expensive leg of their journey.

For example, suppose the employee resides in Delhi and travels to Mumbai, Goa, and Chennai for vacation. In that case, round-trip travel from Delhi to Mumbai is Rs. 4,000, from Delhi to Goa is Rs. 5,000, and from Delhi to Chennai is Rs. 7,000. In this scenario, the LTA exemption would be Rs. 7,000, which is the cost of the round-trip travel from Delhi to Chennai and back. Even though the employee visited multiple cities, the LTA will cover the expense of the farthest city visited and the return journey, which in this case is Chennai.

Claiming LTA in case of a Job Change

An LTA exemption would be available even if an employee changes their job. If the change happens within the block and there is any unutilized LTA, it can be claimed with the new employer. However, if the employee has already availed of the LTA, it would not be allowed by their new employer.

Unclaimed LTA

LTA exemption is available for two trips in a block of four years. However, if the employee does not take two trips within the four-year block, only one unutilized LTA is carried forward to the next block of years. However, to claim the unutilized LTA, the employee must take a trip in the first calendar year of the next block; otherwise, it will expire.

LTA Exemption for Vacation on Holiday

Under the Income Tax Act 1961, the LTA exemption is only allowed when an employee applies for a leave from work and then travels on vacation. Employees who take their vacation on official holidays or weekends cannot claim LTA.

Documents Required for Claiming LTA

Documents like the LTA form and proof of travel, such as tickets and boarding passes, are required to claim LTA.

Procedure to Claim LTA

Every employer announces the due date before which employees can claim LTA and may ask employees to submit proof of travel, such as tickets, boarding passes, invoices provided by travel agents, etc., along with the mandatory declaration. Though employers don’t need to collect proof of travel, it is always prudent for employees to keep copies for their records and submit them to the employer based on the company’s LTA policy or to the tax authorities on demand.

It is crucial for employees to meticulously document their travels, be aware of submission deadlines, and stay up to date with any changes in regulations. Understanding LTA provides potential tax savings and the opportunity to explore new destinations. As you embark on your next adventure, confidently navigate the roads, armed with the understanding of how to make the most of your Leave Travel Allowance. Safe travels!

FAQs about Leave Travel Allowance (LTA)

What does leave travel allowance cover.

Leave Travel Allowance covers the travel expenses incurred during a trip.

How many times can an employee claim Leave Travel Allowance?

An employee can claim LTA only twice in a block of four years.

Is international travel covered under Leave Travel Allowance?

No, international travel is not covered under Leave Travel Allowance.

Which section of the Income Tax Act allows an exemption for LTA?

Section 10 (5) of the Income Tax Act, 1961 allows LTA exemption.

If an employee’s parents-in-law travel with him, would the travel costs for the parents-in-law be claimed as an exemption?

No, LTA exemption cannot be claimed for travel costs for the parents-in-law of an employee.

Can only the travel costs of the family members be claimed as LTA if the employee does not travel?

No LTA exemption would be allowed if the employee does not travel, even if their family members travel.

What would happen if the employee did not travel in a block of four years?

LTA exemption is prohibited if the employee does not travel in a block for four years. However, one unutilized LTA can be carried forward to the next block.

Can I claim an LTA exemption twice in one financial year?

No, only one LTA exemption can be claimed in one financial year.

What is the latest block period to claim LTA exemption?

The latest block period to claim LTA exemption is from January 1 2022, until December 31 2025.

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

Schedule a Product Demo!

$leave travel allowance mandatory$

HR Best Practices
Payroll Management
Social Security
Business Enablement
Employee Support

Download the TankhaPay App

TankhaPay is developed and operated by AKAL Information Systems Ltd.

AKAL is a leading technology company with 20 years of experience, dedicated to empowering businesses through innovative solutions and expert services. Learn More

Quick Links

Why TankhaPay
Request a Demo
ESIC Checklist
EPF Checklist
Workforce Social Security in India

Business News
India Business News

LTA Calculator: What Are The Leave Travel Allowance Rules? Check LTA Calculation Example, Eligibility, Expenses Covered, Tax Exemption - Top 10 Points

LTA Claim: Documents You Need To Submit

LTA Documents: According to Rule 26C of the Rules, employees are required to furnish proof of expenses in Form 12BB to determine the tax exemption and taxable income. In practice, the following documents can be submitted to the employer to claim LTA exemption: Original bills of journey, train ticket, in case train or air facility is not available then original bills issued by a car rental company, boarding passes in case of air travel, bank/credit card/debit card/ wallet statements from which the payments were made. (AI image)

LTA is the short form for Leave Travel Allowance . It is part of your CTC and can be used to make your travel costs tax-free legally in the Indian Taxation system.

Although it is good that a salaried person is exempted from paying tax on the amount, he spends on travel expenses of his family, he can only do so twice in a block of 4 years .

There are other restrictions too with respect to claiming LTA and we discuss them here.

LTA Terms & Conditions

#Travel Expenses

Only travel fare i.e. either by Air, train or bus qualifies for exemption. No food, hotel, sightseeing, etc. expenses are allowed for a claim in LTA. You can hire a taxi if there is no train, air or bus travel option available to your destination.

#Travel outside India

Thinking of a vacation in Bangkok? Forget LTA! LTA tax exemption is only allowed for travel expenses to a destination within India. FYI, Andaman and Nicobar islands are part of India.

Need Help File Application?

If you need help filing, use AM22Tech’s hassle-free visa extension and EAD filing service to file your application with USCIS.

Your application is filed within 1-2 days if you have all the documents ready and uploaded.

Your passport-size photos are edited and printed automatically. You just need to upload your photos online in our app and we take care of the rest.

You can take your dependent parents, dependent siblings, spouse, and two children. All their travel expenses will be exempted.

#Luxury Travel

Tax exemption can only be claimed for economy class airfare, first-class AC rail fare, or first/ deluxe class bus fare.

#LTA tax exemption Limit

The full amount as specified in your CTC letter or given by your employer is exempt if you can provide the bills for it. Note that only Travel expenses can be claimed.

#Carry forward your unspent LTA

If you have not claimed your LTA in the first year, the amount is accumulated in your kitty. Hence, you can claim a higher amount if you travel next year. Year 1 amount + year 2 amount is available for the LTA tax exemption claim in year 2.

#Double Dip LTA

If both husband and wife are receiving LTA from their respective employers, then they both can claim LTA in the same year but for DIFFERENT journey’s.

One journey on which both husband and wife traveled cannot be claimed twice separately, even though they work in different companies. There is no mechanism to verify this but, it is illegal to do so. If caught by the income tax officer, you can be penalized.

LTA Bouquet of Benefits

Some companies have the option of specifying your own LTA amount in the various kitty of allowances as per your preferences. It is generally called Bouquet Of Benefits (BoB). In this case, they fix the total amount of BoB and leave the various allowance figures for you to decide.

This is generally done to give you a free hand on what you think is the best for you to save tax.

For e.g. A common BoB could be something like this:

In this example, there are various tax saving options via different kinds of allowances including LTA. If you look at the structure carefully, there is an allowance called Personal allowance which is FULLY taxed.

Now, the point I am trying to make here is that all other allowance (except personal allow. – which is FULLY taxed), have a maximum limit for tax exemption. Hence, you can use LTA for your advantage and declare it as the maximum value after consuming the maximum amount of other expenses and then reducing personal allowance.

You may argue that you may NOT travel and hence would not be able to claim any tax benefit.

I would say that it won’t make any difference even if you declare it and not claim it. But if you do NOT declare it, you are anyway going to be taxed on personal allowance amount and cannot claim in case you do travel!

This is also the reason behind saying that consume all other tax-saving allowances to their maximum before increasing LTA. So, I would say that this should be the ideal BoB for this example:

I hope this will clarify lot of queries about LTA in your mind.

HSA account - tax free money and benefits

HSA Account is Tax-Free Money, Invest in Stocks, Use for Medical Anytime

HRA Tax India – Can I Pay Rent to Wife?

India in-hand salary calculator (pay slips, monthly tax).

US tax - NRE/NRO interest - Indian Income PPF

How to file US Tax on NRE, NRO Interest (without 1099-INT)

Rent receipts for HRA tax exemption India

Documents Required for HRA Exemption in India (Tax Saving)

Green Card Public Charge Rule Removed (H1B, i485)

ICAI CA Foundation Result Live
Nifty 50 Powered by MOVADO
Budget 2024 Quiz
Income Tax Calculator
Mutual Funds
Share Market Live
Weather Update
Q1 Results 2024 Live

Business News
Leave Travel Allowance: When is the right time to claim your LTA?
Loksabha Election
Budget 2024
Stock Market Quotes
Mutual Fund
Stock Stats
Top Gainers
CaFE Invest
Investing Abroad
Gold Rate in India
Silver Rate in India
Petrol Rate in India
Diesel Rate in India
Express Mobility
Banking & Finance
Travel & Tourism
Brand Wagon
Entertainment
Web Stories
Auto Web Stories
Infographics
Today’s Paper
International
Edits & Columns
Personal Finance Print
PRIVACY POLICY
TERMS AND CONDITIONS
IPO’s Open and Upcoming 12
Top Indices Performance
Stock Analysis
Stock Market Stats
Financial Literacy
Gold Rate Today
NSE Top Gainers 1539
NSE Top Losers 1109
BSE Top Gainers 2517
BSE Top Losers 1819
NSE 52-Week High 202
NSE 52-Week Low 14
BSE 52-Week High 368
BSE 52-Week Low 23
NSE Price Shocker
NSE Volume Shocker
BSE Price Shocker
BSE Volume Shocker
NSE Sellers
BSE Sellers
Silver Rate Today
Petrol Rate Today
Diesel Rate Today

Myinvestmentideas.com

Best Investment Plans in India and Money Saving Ideas

Home » Taxation

20 FAQ’s for claiming Leave Travel Allowance (LTA) as per Income Tax Rules

LTA is the benefit given by the employer to employees. While employee would enjoy the trip, they would also get benefitted with income tax benefit received through LTA. What is Leave Travel Allowance (LTA)? What are the income tax rules pertaining to LTA? In this article I would detail about LTA and some of the frequently asked questions about LTA.

What is Leave Travel Allowance (LTA)?

LTA (Leave Travel Allowance), is a benefit provided by almost all employers to their employees which provide income tax benefit. One can claim LTA for two times in a block of 4 years. Employees would take leave, enjoy their travel and claim this as reimbursement where income tax is not deducted. However, there are certain Income Tax guidelines to be followed to claim LTA.

Also Read: How to check employee provide fund (EPF) online?

1) What is the amount that can be claimed for LTA?

LTA is a benefit provided by the employer. It could be any amount starting from Rs 20,000 and above. The amount would be decided by the employer based on the grade and seniority of the employee.

2) When an employee can claim LTA?

An employee can claim LTA for 2 years in a block of 4 block years. Means, they can claim first time in year-1 and year-2 and second time in year-3 and year-4.

3) What is a block year in LTA?

Income tax rules define block year for claiming LTA. Previously it was 2010-2013. Currently it is 2014-2017. Means you can claim first LTA in 2014 and 2015 and second LTA in 2016 and 2017.

4) How a year is defined by IT rules for claiming LTA?

For claiming LTA, it is a calendar year and not financial year. For e.g. 2015 means 1-Jan-2015 to 31-Dec-2015. 2016 means 1-Jan-2016 to 31-Dec-2016. So current block year (4 years) starts from 1-Jan-2014 and ends at 31-Dec-2017.

5) Which IT section exempts LTA amount?

LTA amount claimed as per IT rules is exempted u/s 10 (5) of Income Tax Act.

6) How many trips an employee is eligible to claim for claiming LTA?

The employee can claim LTA for only one trip in a year. One cannot claim multiple trips in a year to claim LTA.

7) If an employee does one trip, but visits multiple places, is he eligible to claim LTA?

Income tax rule indicates that LTA can be claimed for the shortest distance between the starting point and farthest point. In between, if there are more places to visit, you can do that.

Also Read: What are the smart ways to reduce your home loan interest and EMI?

8) Who is eligible to travel along with employee to get LTA benefit?

The employee can take his spouse, kids and dependant parents, dependent brother or sister as part of travel to claim LTA benefit. He cannot take his friends / girlfriend (J) to get LTA benefit.

9) How many kids are eligible to travel to get LTA benefit?

2 kids are eligible for travel to get LTA benefit. In case there is triplet kid, due to twins, such twins would be considered as one kid for this purpose.

10) Can I claim LTA by travelling abroad trip?

LTA can be claimed for travel taken within India. You cannot claim foreign trip expenses for LTA benefit.

11) What expenses can be claimed under LTA Benefit?

LTA can be claimed only for ticket cost from starting point to the destination point and vice versa. One cannot claim food expenses, lodging expenses and other miscellaneous expenses under LTA claim.

12) What mode of travel is eligible for claiming LTA?

In case of air travel, economy class is eligible.
In case of train travel, up to first AC is eligible.
In case of road transport, rented vehicle / bus of any kind is eligible to claim LTA benefit.

13) In case spouse is working and spouse is also eligible for LTA, how LTA claim would work?

There is no change in IT rules in case spouse is working. However, smart way of claiming LTA is, one can claim in 1 st year and spouse can claim in 2 nd year. Similarly, one can claim in 3 rd year and spouse can claim in 4 th year. This way, they can enjoy 4 trips and also get the LTA tax benefit for the entire block year.

Also Read: Should employee negotiate on Gross Salary or Net Take Home Salary during job change?

14) Can we carry forward unclaimed LTA?

Yes. An employee can carry forward one trip to next block year. Means in a 4 block years, he can claim one trip and one trip he can carry forward to the next block year. During the next block year, instead of 2 trips, they can undertake 3 trips and claim LTA benefit. However, this has to be communicated to an employer so that they can make provisions in their books.

15) If an employee moves from one company to another company, how LTA can be claimed?

There are no specific rules if an employee moves from one company to another company. They need to go by the same rules and claim 2 claims in a block of 4 years.

16) If en employee travel at the end of the year and returns from a trip which falls beyond 31 st Dec, how does it work?

In such case, employee need to consider starting date as a basis and claim for that calendar year.

17) If en employee travel at the end of the block year and returns from trip after 31 st Dec which falls in a different block year, how does it work?

Block year for the current LTA period is from 1-Jan-2014 to 31-Dec-2017. Assume that you want to claim your 2 nd LTA amount and planned your trip from say 25 th Dec 2017 to 5 th Jan 2018. Since 1-Jan-2018 onwards is a different block period, you can still claim this trip under 2014-2017 block period.

18) My employer does not provide LTA benefit, can I make a trip and claim LTA while filing IT Returns?

LTA is a benefit provided by the employer. This is paid as reimbursement to you when you claim as per IT Rules. In case your employer does not provide this benefit, there is no way you can claim LTA. You cannot claim this while filing IT Returns.

19) I missed to submit my first LTA claim in a block year. Can I submit 2 LTA claims in a block year later?

As per IT Rules, an employee need to claim 2 trips LTA in a block of 4 years. However, if you have missed to claim in first 2 years, you need to indicate this to your employer, so that they can carry forward to subsequent 2 years of the same block year. You can later submit the bill pertaining to the first 2 years (bill date should indicate that) and claim it. However, you cannot claim 2 trips expenses in subsequent 2 years of a block period (with bill dates pertaining to 3 rd and 4 th year of a block period).

Also Read: How to get Rs 10 Lakhs and above a tax free Income and pay Zero Tax?

20) Do I need to submit a single bill for our trip or multiple bills would be accepted for LTA?

LTA benefit is given for a trip. Means, one family is travelling. Ideally, there would be one bill. However, there are cases where multiple bills would be received for a single trip (for airfare bills, where a family member agreed to join later and the booking was made later, but travel date is same of the remaining members). In such case, these are agreed by employers. It would be better to check with employer in such circumstances before proceeding further.

If you like this article, please share this on your Facebook or Twitter. This would be a special gift which you would be giving to our blog.

Suresh 20 FAQ’s for claiming Leave Travel Allowance (LTA) as per Income Tax Rules

Recent Posts

Apply IPO Online: Common Mistakes to Avoid and Best Practices - August 30, 2024
Savings Simplified – Selecting the Right Investment Plan for Your Goal - August 30, 2024
LIC Yuva Term Plan No 875 – Eligibility, Benefits and Review - August 18, 2024

Understanding the Goods and Services Tax Calculators

104 comments

Sir, I booked my tickets from my cousins credit card also I paid him back in cash. Am I still eligible for LTA claim.

If i travelled with family on 11th Jan. But due to school urgency me and my daughter returned few days early and Wife and son returned later. Can i still claim for whole family?

Sir can you please reply its been outstanding for a month now. I understand you may be busy. BUt please respond if you are too busy to answer then I can stop following this thread

I just responded

I had a made a travel from 26 Feb 2020 – 1 Mar 2020 and tried to make an LTA claim with my employer . I havent made any previous LTA claims in the current block year. But i was told by employer that for the claim to be accepted the travel should be made after 1 Apr 2020 to be claimed in the current window and cant submit bills from last year.

Is this true as per IT rules ? Could you help to clarify.

Thanks in advance

Subscribe to Blog via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Email Address

About Suresh KP

Hello, this is Suresh KP , the founder of this blog. I have written over 2,500 articles on this blog covering various investment options in India. I am a Certified Investment Adviser and a Certified Research Analyst. However, I am NOT a SEBI Registered Investment Advisor . The articles on this blog are created for educational purposes only. Please consult your investment adviser before making any investment decisions.

Submit Post
Budget 2024

Leave Travel Concession Section (LTC/LTA) 10(5) of Income Tax Act, 1961

The Income Tax Act 1961 provides certain exemption from salaries apart from deduction from Chapter VI A. Exemptions refers to certain part of salary is not considered as a income while calculating taxable Income. Deductions means a certain amount of saving or Expenditure for Specific reason is allowed to deduct from your Gross Taxable Income.

Leave Travel Allowance or Concession is one of those Available Exemption given to Salaried Assessee from his Total taxable income as per Section 10 subsection 5 of Income Tax Act 1961. As the name itself leave travel Allowance refer an amount received by employee from his employer for leave proceeding to any place in India either on leave, after retirement of service or termination from his Service. The Benefit is Available to individuals Residents as well as non- residents in respect of leave concession for himself / herself or family. Family Includes Spouse children of individual parents and brothers and Sisters dependent upon him/her.

Government has recently made an announcement vide notification F.No. 12(2)/2020-EII(A) Ministry of Finance Department of Expenditure EII(A), that all non-central government employees would be eligible for exemption subject to maximum Rs. 36,000/- per person without producing travel bills.

Certain conditions to be met for claiming Leave travel allowance as exemptions. The conditions are as follows

Actual Journey is must for concession
Only domestic travel is considered no International travel is available for concession.
The exemption shall not be available to more than two surviving children of an Individual after 01.10.1998. these restrictive sub-rule shall not available in case of children born before 01.10.1998 or in case of multiple births after first child.
Under Rule 2B, exemption will be available only in respect of two Journeys in block of four calendar years which start from the year 1986. **

** Where such leave travel concession is not availed by employee in any block of four years, one such LTC will be carried forward immediately next block of four calendar year.

Monetary Limit

Where the journey is performed after 01.10.1997 the amount of LTC is exempted under section 10(5) in respect of value of LTC received or Actual Amount spend on travel subject to certain conditions:

1. Air Travel

Amount not exceeding the air economy fair of national carrier by the shortest available route to the place from destination.

2. Any other mode

i.) When rail service is Available

Amount not exceeding the air conditioned first class rail fair by shortest route.

ii.) When rail service is not available

a) A recognised public transport facility exist

Amount not Exceeding the first or deluxe class fair of such transport.

b) No recognised public transport facility exist

Amount equal to first class railway fair available by shortest route.

Example If LTA granted by employer is Rs 50,000 and actual eligible travel cost incurred by employee is Rs 30,000, exemption is available only to the extent of Rs 20,000 and balance Rs 20,000 would be included in taxable salary income.

Procedure to Claim LTC

Procedure to claim LTC is generally Organisation specific. Every Organisation announces the due date within which LTC can be claimed by the employees and may require employees to submit proofs of travel such as tickets, invoice copies or expenditure voucher provided by travel agent etc. along with the mandatory declaration.

Though it is not mandatory for employers to collect proof of travel, it can be asked by organisation to submit the records of travel as per LTC policy of the company/to tax authorities on demand.

*** Value of leave travel concession provided to high court judge or Supreme Court judge and his family members are completely exempt from tax without any condition.

Some other conditions of to be kept in mind to avail the exemption under notification F.No. 12(2)/2020-EII(A) dated 12the October 2020.

1) The employee spends the money of a larger sum than the entitlement on account of LTC on actual expenditure

2) Cash equivalent of full leave encashment will be allowed, provided the employee spends an equal sum.

3) The cash equivalent may be allowed if the employee spends a sum 3 times of the value of the fare given above. Employee who spends less than 3 times the fare amount will get proportionate income tax exemption. The purchase have to be made from 12.10.2020 to 31.3.20.21. purchasing of goods or service to be made by registered vendor of GST and GST is lavied 12% or more on Purchase made. E.g. suppose if the LTC fare is Rs 10,000, and is claimed for a family of four, then the employee would get Rs 40,000 (20,000 x

4). The amount that the employee will have to spend would be Rs 1,20,000 (Rs 40,000 x 3). However, if the employee ends up spending only Rs 96,000, the person would get tax exemption of Rs 32,000 only (80% of 40,000).

5) The Concession is not available to an employee who has exercised an option to pay income tax under new income tax / concessional tax regim.

income tax act 1961
« Previous Article
Next Article »

Name: CA Brijmohan Lavaniya

Qualification: ca in job / business, company: https://www.taxbuddy.com/, location: kalyan, maharashtra, india, member since: 07 may 2020 | total posts: 46, my published posts, join taxguru’s network for latest updates on income tax, gst, company law, corporate laws and other related subjects..

Join Our whatsApp Group
Join Our Telegram Group

I have forgotten to submit my travel bills (I travelled within India in Sep 2022; FY 2022-23; Travel Amount to Rs. 26000) to my employer for availing LTC tax exemption.

Can I get the tax exemption wrt LTC while filing the ITR1 for FY 2022-23 (AY 2023-24).

how to settle this query: “Restrict the exemption u/s 10(5)-Leave Travel concession/assistance to “Leave Travel Allowance” under Salary as per section 17(1)”

I received LTC Rs 35500/- during 2022-23, as a retied employee am i eligible for exemption in income tax without traveling.

I have taken LTC fare of Rs.81000/ of economy class for my 3 family member during dec.2022, may pl clarify whether this amount is taxable for I tax for FY 2022-23 or not , I am a central govt. employee

All conditions laid under 2BA of 10(5) are fulfilled in my case and GST paid is 18%. But my Auditor is refusing to claim this benefit saying that it is not mentioned in my F 16 issued by my employer.

I am a central government employee and purchased a car costs around Rs.7.5 lacs with LTC voucher of Rs.60,000 and leave encashment of Rs.40000/-.Am I eligible for exemption of both in IT return. With regards T V V RAO

I am PSU employee , have availed LTC in 2020-19 by traveling to destination and LTC claim of Rs 67298 is settled in 2020-21and included in F16 B form by department as travel concession or assistance under section 10(5). Whether I will get exemption of full amount of Rs 67298 or amount i.e. Rs 36000 as explained in this article ?

Your email address will not be published. Required fields are marked *

Post Comment

Subscribe to Our Daily Newsletter

Latest posts, invoice management system (ims) – a new functionality in gst by gstn, introduction of invoice management system (ims) on gstn portal, customs duty and valuation rules: forever new apparels case analysis, justice hima kohli can never retire from public memory, जीएसटी काउंसिल की मीटिंग 9 सितंबर 2024 के संभावित विषय, from chaos to clarity: how dir3 kyc transforms director identification, gst invoice management system (ims): frequently asked questions, invoice management system – old wine in a new bottle, statutory provision for signing of financial statement of company by auditor, buy-back of shares: analysis under companies act and income tax act, featured posts, have you received your income tax refund if not, please follow this procedure, international business- income tax sections to be remembered, income tax rates for financial year 2023-24 and 2024-25, statutory and tax compliance calendar for september 2024, what is the formula to calculate eps pension, new invoice management system (ims) on gst portal from oct 2024, huge rs. 9 lakh penalty for missing din in financial statements – mca, uncovering unexplored dimensions: a 2024 perspective on the landscape of online gaming in india, sebi report: 54% of ipo shares sold within a week, brief history of gst in india, popular posts, due date compliance calendar september 2024, carry forward and set off of losses with faqs, income tax audit under section 44ab: faqs, clubbing of income under income tax act, 1961 with faqs, list of resolution required to be filed with roc in form mgt-14, tax deducted at source (tds): faqs, tax benefits available to senior citizens, permanent account number (pan), faqs on income from house property, taxation of capital gain in india – faqs.

+918826305009
+91-97177 35736
[email protected]

Everything about Leave Travel Allowance – Rules, eligibility, tax exemption & latest updates

Everything about section 194P

Which ITR form you should file? – Types of ITR forms

We have heard about tax deductions that can be claimed while filing ITR. For example, the premium paid for life insurance can be claimed as deductions to get tax benefits under section 80C. But there is one more term called “tax exemption”. These are provisions that allow the taxpayer to get exemption from paying taxes on that amount. Such provisions help the employers to plan a Cost to Company for the employees that is tax-efficient and can help in saving some money. One such widely known and used exemption is Leave Travel Allowance (LTA) and is also known as Leave Travel Concession (LTC).

What is LTA/LTC?

It is the allowance that is provided to the employees for travelling on leave. This allowance can only be claimed if certain conditions are met.

Conditions for claiming LTA

The journey should be an actual journey.
It only includes domestic journeys.
Travel can be done alone or with ‘family’. The term family means spouse, children and dependent parents and siblings. Note: If the children are born after 1 Oct 1998, then only 2 children are allowed. In the case of multiple births on the second occasion, this restriction will not be effective.

Eligibility

It only covers actual travel costs, including air, rail, and bus fare. Other expenses like accommodation, sightseeing, local conveyance etc., will not be covered.

Can we claim LTA on every vacation?

No! The LTA can be claimed for 2 journeys performed in a period of 4 years. But if anyone has not claimed on last eligible vacation, then it can be carried over to the next period of 4 years.

How to claim LTA?

The employee is required to submit proof of travel like travel tickets, boarding passes, relevant invoices, etc. The other guidelines may differ according to the organization.

Can we claim LTA exemption in the new tax regime?

Now a new optional tax regime has been introduced, and it is available for HUFs and individuals. It offers lower tax rates and fewer deductions/exemptions. Anyone who has chosen for this tax regime will not be eligible to claim exemptions like LTA , HRA, special allowances under section 10(14), and many more.

How to file ITR with a better saving option?

You should take the help of a professional in the process of tax filing for increasing your savings. You can contact Inside Tax for Income Tax Return (ITR) Filing Services in Delhi NCR or any other nearby place. We are an organization of experienced professionals who can share some tips to save extra under the current tax regime. You can contact us anytime and get your accounts audit and tax filed as soon as possible with precision.

How to Safeguard Yourself from Tax Scams in India

Mastering Your Money: How Wealthy Individuals Are Outsmarting Taxes with LLPs and Global Moves

What You Should Know About Non-Resident Indians’ (NRIs’) Tax Situation

The Economic Times daily newspaper is available online now.

Central govt employees, private employees can't claim lta if they don't follow these rules; lta eligibility, other latest updates.

LTA for central govt employees: Employers offer Leave Travel Allowance (LTA) to offset travel expenses during leave. It covers airfare, train tickets, or public transport, but reimbursement is capped by employer or tax limits. Confusions arise, especially with air travel. Here's a breakdown: Can you claim LTA with a confirmed flight ticket? Does the booking platform matter? Is family included? What documents are required for flight-based LTA claims?

LTA-eligibility-rules-exclusion-what-documents-to-submit

1) Who is eligible to claim LTA?

2) can you claim lta against flight tickets, 3) how much lta can you claim for your air travel, 4) can you claim lta for domestic and international travel, 5) do you need to book a flight ticket from a particular website to be eligible for lta, 6) what documents do you need to submit to claim lta, 7) can you claim lta for air travel on one side, 8) can you claim lta if you have a confirmed air ticket is a boarding pass enough to claim lta, 9) who will pay for the ticket if you cancel the ticket, 10) can you claim lta under the new tax regime, read more news on.

(Catch all the Personal Finance News , Breaking News , Budget 2024 Events and Latest News Updates on The Economic Times .)

Subscribe to The Economic Times Prime and read the ET ePaper online.

Resourceful Automobile listing reveals this about SME IPO frenzy among investors

15 reasons why family offices are investing in startups and AIFs

How heatwaves and floods are putting auto sales under the weather

What explains Dabur and Jubilant’s big money fizz for Coca Cola bottler?

Should Sebi encourage or discourage SME IPOs?

3 critical actions for the survival of P2P lending after RBI’s new mandate

Find this comment offensive?

Choose your reason below and click on the Report button. This will alert our moderators to take action

Reason for reporting:

Your Reason has been Reported to the admin.

To post this comment you must

Fill in your details:

Will be displayed

Will not be displayed

Share this Comment:

Uh-oh this is an exclusive story available for selected readers only..

Worry not. You’re just a step away.

Prime Account Detected!

It seems like you're already an ETPrime member with

Log out of your current logged-in account and log in again using your ET Prime credentials to enjoy all member benefits.

To read full story, subscribe to ET Prime

₹34 per week

Billed annually at ₹2499 ₹1749

Super Saver Sale - Flat 30% Off

On ET Prime Membership

Unlock this story and enjoy all members-only benefits.

Offer Exclusively For You

Save up to Rs. 700/-

ON ET PRIME MEMBERSHIP

Get 1 Year Free

With 1 and 2-Year ET prime membership

Get Flat 40% Off

Then ₹ 1749 for 1 year

ET Prime at ₹ 49 for 1 month

Freedom Offer

Get flat 20% off on ETPrime

90 Days Prime access worth Rs999 unlocked for you

Exclusive Economic Times Stories, Editorials & Expert opinion across 20+ sectors

Stock analysis. Market Research. Industry Trends on 4000+ Stocks

Get 1 Year Complimentary Subscription of TOI+ worth Rs.799/-

Stories you might be interested in

Leave Travel Allowance: Through a magnifying glass

The LTA is an allowance paid to the employee by the employer when the former submits original travel tickets/invoices, which were used for travelling with their family or alone when the employee was on leave.

The amount paid as LTA is tax free. The LTA is one of the best tax-saving components that an employee can avail.

Multifold Benefits of LTA

Encouraging employees to avail earned/privilege leaves also helps organizations as they don’t have to encash leaves upon an employee’s exit or retirement, which can be significantly high in cases where employees avail very few leaves!

If you look at the bigger picture, LTAs indirectly boost the tourism and travel sector as more and more salaried individuals and their families travel during their annual leaves/vacations!

Maximum Claim Limits

Though, there is no upper limit defined for LTA by the income tax authorities, most organizations cap it for effective administration. The most popular upper limit capped for LTA is an employee’s monthly basic salary.

LTA Restrictions

As the name suggests, LTA exemption is restricted only to the travel cost incurred by the employee. It’s not valid for other costs incurred during the entire trip, which might include expenses such as food, shopping and stay, etc.

Concept of block years

An employee can claim for LTA for only two journeys in a block of four years . These block years are different from the financial years (they’re based on calendar year) and are created by the Income Tax department.

Current Block for LTA Claims

Next Block for LTA Claims

1 January 2014 - 31 December 2017

1 Jan 2018 - 31 December 2021

In the current block, an employee can claim LTA for two journeys that have occurred during the period 2014 to 2017. However, if the employee has not made any LTA claims in the current year, then the exemption gets moved to the next year within the current block.

Also, if an LTA exemption is not claimed in the current block, only one LTA claim can be carried over to the first year of the next block. The exemption of the carried forward LTA should be claimed in the first year itself of the next block.

Also, the employee can claim LTA for multiple travels in the same year.

Rules of Exemption

Given below is a list of expenses that is exempted under LTA:

Travel by air : Economy class airfare by the shortest route or amount spent will be exempted depending on whichever is lesser.

Travel by rail : A.C. first class fare by the shortest route or the amount spent on travel will be exempted depending on whichever is lesser.

Place of origin and destination connected by rail but journey performed by other mode of transport

Place of origin and destination not connected by rail (partly/fully) but connected by other recognised public transport system

Place of origin and destination not connected by rail (partly/fully) and not connected by other recognised public transport system also.

Travel Limitations

Given below are the travel limitations applicable under LTA:

It covers only domestic travel and doesn’t cover international travel. This is because originally it was meant to boost domestic tourism and travel!
The mode of travel should be either air travel, rail or any other public mode of transport.

When to claim LTA

Before considering claiming for LTA, an employee is advised to check his/her pay structure. The LTA amount can vary from one employee to the other, however, if they’re eligible for LTA, they’ll need to produce original tickets/bills as per the criteria and submit the same to their employer.

Every company will formally announce the dates for LTA claims. They will then need to fill in the applicable forms, attach the documents such as travel tickets, boarding passes, etc., and send them to their HR or accounts team. Documents such as ‘boarding passes’ are needed as proof of the travel, tickets are usually not enough.

Employees should make their LTA claims before their employers make the final calculation for tax liability.

What if claimed amount is lesser than entitled amount?

If an employee is entitled to an LTA amount of INR 30,000 but he/she has claimed only for INR 20,000, the applicable LTA deduction will be for INR 20,000 and the remaining INR 10,000 will be added to his/her taxable income, which will be accountable for tax liability.

Providing Proof of LTA

Employers usually don’t have to submit proof of LTA to tax authorities while assessing LTA claims. Even though it is not mandatory for employers to collect proof of travel from the employees, they still have the right to demand documentary proof, if needed.

The employee is advised to keep proof of their travel such as boarding passes, flight tickets, invoice of travel agent and other documentary proof in case the assessing officer or the employer demands for it.

Also, it is also important for HR to verify that the employee was on leave of absence for the duration for which LTA is being claimed.

Central & State Notifications - COVID 19 (Sep-Oct 2020)

Statutory Notifications of September 2020

Employees Deposit Linked Insurance Scheme (EDLI Scheme)

Subscribe to our newsletter

Portuguese Industrial Action Cancelled

Affected Airports - City , State Association:

Lisbon, Portugal (LIS)

For complete details View

Update August 30, 2024

Travel Notice Cancelled effective 15:15 CT

American Airlines has implemented a special exception policy to our travel partners that is now available for our mutual customers due to the Portuguese Industrial Action. Our Travel Notice exception policies on American are also available when ticketed to/from/through on our Joint Business partners: This applies to both prime and codeshare flights as shown below:

Inventory Requirements

Lowest Inventory, Same Cabin

If original inventory is not available rebook lowest inventory available in the same ticketed cabin. As a reminder, customers that do not hold a Basic Economy fare should never be booked into B inventory.

Basic Economy -

Must be booked in B inventory only. If B inventory is not available, then an alternate flight must be selected. Advance Purchase and Ticket Change restrictions are waived.

Instant Upsell -

Refer to Travel Notice Policy - Travel Agency Guidelines for rebooking guidelines and Endorsement Box requirement when the customer purchased Instant Upsell (IU) directly with American on aa.com . IU PNRs contain the following SSRs:

OTHS AGENCY RETAINS CONTROL OF TKT FOR REISSUES
OTHS INSTANT UPSELL ANCILLARY EMD ISSUED 001xxxxxxxxxx

Refer to Exceptions to Fare Rules .

Note: If customers are unable to rebook or reissue their ticket within the given timeline, they can cancel their reservation and use the value of the ticket toward the purchase of a new ticket; all rules and restrictions apply. Travel must commence no later than one year from the date of original issuance.

Endorsement Box Requirements

Refer to individual Travel Notice for Event Name
Ticket Reissue required. This is the only required verbiage and supersedes all other information.

Instant Upsell (IU) tickets must use waiver code: TNADV/IU when rebooking in the Instant Upsell Inventory IU PNRs contain the following SSRs:

Refer to Travel Notice Policy - Travel Agency Guidelines for Endorsement Box requirement when the customer purchased Instant Upsell (IU) directly with American on aa.com .

Changes to Origin/Destination - Not Allowed

Waive Change Fee
Ticket reissue for original ticketed fare
300 Mile Radius is always allowed, unless otherwise stated in the notice
Changes to origin/destination are not permitted for the travel notice
Any changes made to origin/destination all fare rules apply

300-Mile Radius Only - Allowed

Within same country
For booking inventory, view Inventory Requirements

Basic Economy Short-haul fares

book in B inventory only.If B inventory is not available, then an alternate flight must be selected.

Changes to Connection City

Changes to Co-Terminal

Changes to Co-terminal and MAC airports on AA Prime and AA*/Codeshare flights are allowed

• Co-terminal & MAC Airports are considered the same routing.

Reissue Policy Information

American Airlines will waive change fees and travel agents may rebook and reissue tickets provided the below guidelines are met and applied:

Ticket issued on the following ticket stock: AA 001, AY 105, BA 125, El053, IB 075, JL 131, QF 081
Applies to AA*/ one world flights
Travel has not commenced on the affected flight segment and the ticket has not been reissued by American Airlines
The first departure flight is more than 2 hours away
Affected coupons are in OK status
Travel reissuance only in accordance to dates identified in the applicable Travel Notice Exception Advisory
More than one change allowed without an additional collection, including penalty or change fee within the Travel Notice dates
Original issuing agency responsible for ticket reissue
Ticket Revalidation not permitted
The return travel must be booked in the original class of service (inventory)
Refer to Extend Travel Rebooking after the Travel Event
Basic Economy must be rebooked in the appropriate Basic Economy inventory
Please ensure the above procedures are accurately followed to prevent debit memo issuance

Rebooking - Exception to Fare Rules

Exception to Fare Rules: All fare rules apply with the exception of the following:

Advance Purchase requirement waived
Minimum/Maximum Stay requirement waived
Change Fee waived
When changes to the outbound travel occur, the unaffected return date may be changed to protect the original length of the trip. The return travel must be booked in the original class of service (inventory).

SalesLink Request

Rebook flights in compliance with Travel Notice Exception Policy
Log-in to SalesLink at www.saleslink.aa.com
Request Type: select 'Service'
Input AA PNR
Waiver Type: select 'Travel Notice'
Travel Notice: select applicable Travel Notice event name
Select 'Next' - and complete request
Verify: SalesLink approval remarks in PNR
New Ticket Endorsement Box: Enter event name only
Ticket Reissue required

Endorsement Box requirement: 30AUG24A or the exchange will be subject to a debit memo

Extend Travel Rebooking Guidelines

If customers are unable to rebook within the New Travel Dates, may reschedule their reservation to/from the same city or alternate cities and reissue their ticket with the below guidelines:

Cancel their itinerary and apply the value of the original ticket towards the purchase of a new ticket for travel commencing within 1 year from the date of original issuance
Change fee only is waived as long as the original ticket is reissued within ticket validity and the impact dates are in accordance with those identified in the Travel Notice
Basic Economy fares may only be used towards the purchase of other Basic Economy fares.
Residual MCO's are not allowed when using the TNADVE waiver code for reissue.
Extend Travel Rebooking does not apply to tickets in conjunction with Instant Upsell (IU)

Refund Policy Information

When the flight is cancelled or the length of delay is 91+ minutes , travel agents may refund ticket(s) through normal GDS/ARC/BSP processing. Refer to our Schedule Irregularity policy for delays 90 minutes or less.

Refund To Original Form Of Payment - All penalties/fees waived
Non-Refundable Fare
Refundable Fare with cancellation Fee
Basic Economy Fare
Bulk/Opaque Fare

Note: If the ticket has been exchanged by American as an INVOL submit the refund request directly with American. Refer to American Airlines Refunds .

When the flight is not cancelled or the length of delay is 90 minutes or less , a refund does not apply:

If customer elects to cancel their reservation and use the value of the ticket toward the purchase of a new ticket outside the Travel Notice dates; may use Extend Travel Rebooking or may hold ticket for future travel; all rules and restrictions apply.
Travel must commence no later than one year from the date of original issuance.

En route/Diversion

Connecting customers' en route to one of the above-listed destinations or whose flights are diverted will have the option to return to their original departure city and rebook travel to alternate future dates.
Customers should work directly with the airport to obtain a boarding pass for return travel to their original departure city. If the customer wishes to rebook travel to alternate future dates, please contact American Airlines Reservations for assistance. Alternatively, they may receive a refund if re-accommodation options are unacceptable.
If a ticket has already been reissued by American Airlines or the ticket is partially used, travel agents must submit the refund request online at https://prefunds.aa.com/refunds/

American Airlines will continue to monitor this Travel Notice Exception Advisory and adjust this policy if needed. Changes will be posted on AA.com and www.saleslink.aa.com reference. Please check these sources frequently for the most up to date information.

www.saleslink.aa.com Reference: Select Travel Notice Policy - Travel Agency Guidelines
Visit www.saleslink.aa.com and navigate to AA News and Offers to view current travel notices.
Contact your Sales Support Center 800-621-8489 or American Airlines Reservations 800-433-7300 (U.S. and Canada) or for Reservations outside the U.S. and Canada, please see our Worldwide Reservations Numbers American Airlines encourages all customers to check flight and gate status prior to leaving for the airport. For complete travel information, visit AA.com .
Group reservations must be changed by AA Group & Meeting Travel
Information contained on this web site is subject to change at any time without notice. American Airlines shall not be liable for any consequences resulting from your reliance on the information.

Pay calculator tool

Find wages and penalty rates for employees.

Leave calculator tool

Work out annual and personal leave

Shift calculator

Rates for your shifts

Notice and redundancy calculator

Accessibility
Subscribe to email updates
Visit Fair Work on YouTube
Visit Fair Work on Twitter
Visit Fair Work on Facebook
Visit Fair Work on Instagram
Visit Fair Work on LinkedIn

Automatic translation

Our automatic translation service can be used on most of our pages and is powered by Microsoft Translator.

Language help

For professionally translated information, select your language below.

Right to disconnect

Eligible employees have the right to refuse employer or third-party contact outside of working hours in some circumstances.

the reason for the contact
how the contact is made and how disruptive it is to the employee
being available to perform work during the period they’re contacted, or
working additional hours outside their ordinary hours of work
the employee’s role in the business and level of responsibility
the employee’s personal circumstances, including family or caring responsibilities.

Other matters may also be considered.

It will be unreasonable for an employee to refuse to read, monitor or respond if the contact or attempted contact is required by law.

Example: Employee’s personal circumstances make out of hours contact unreasonable

Selim is a consultant and is working on a major project for a client. Selim has 2 young children. He has flexible working arrangements and his working hours are 7.30 am to 4 pm so that he can pick up his children from daycare.

At 4.30 pm on a Tuesday afternoon, Selim’s supervisor, Ava, is copied into an urgent email to Selim from the client. Ava considers whether to contact Selim and ask him to action the client’s request. It’s urgent and Selim is very familiar with this aspect of the client’s work. However, Ava knows that Selim is on his way to pick up his children and it’s unlikely that he’ll be able to deal with the request.

Ava asks another consultant to help the client and will update Selim when he returns to work. Ava’s decision is appropriate given Selim’s family responsibilities and the fact that another employee could resolve the issue.

Example: Employee is compensated for reasonable out of hours contact

Elizabeth is an associate at a medium-sized architecture firm where she usually works 8.30 am to 5 pm.

Elizabeth has been asked to fill in for her manager who is taking 3 months leave. During this period, Elizabeth will need to lead the delivery of a project for a major client. She is receiving extra pay while acting in her manager’s role.

Her supervising partner, Devi, has let Elizabeth know that a reasonable amount of out of hours contact and work will be required during her acting period to deliver the project. She is also told that this has been factored into her higher pay.

Devi gives her a copy of the firm’s policy on out of hours contact and asks if she has any questions.

In her second week in the role, Elizabeth leaves work at 5 pm. Shortly after, Devi finds out that Elizabeth’s team needs to urgently provide the client with additional documents for the project by 10 am tomorrow. It will take around 3 hours to prepare the documents. Devi tries to call Elizabeth on her personal mobile and sends her a text message explaining the situation.

Elizabeth doesn’t answer the calls as she’s about to go to the gym and then run some errands. She reads the full message at 8 pm but decides that it’s too late to respond to Devi. Based on the circumstances, Elizabeth’s refusal to monitor or respond to Devi’s contact could be unreasonable.

Awards, enterprise agreements and other registered agreements can also include additional right to disconnect provisions.

All awards include a right to disconnect term.

Award changes

The Fair Work Commission added right to disconnect terms to all awards on 26 August 2024. Learn more at Variation of modern awards to include a right to disconnect .

In some situations, an employee may be required to monitor, read or respond to contact (or attempted contact) from the employer outside their working hours in accordance with an award term.

More award information will be available on this page soon. Check back for further updates. In the meantime, you can check your award for right to disconnect rules that apply for your industry or occupation.

If you're covered by an enterprise or other registered agreement, check the terms of your agreement for information about the right to disconnect. To find an enterprise agreement, go to the Fair Work Commission’s website .

Regular and open communication helps maintain a harmonious working environment. It can also prevent workplace problems from happening. Both employees and employers are responsible for open and effective communication at and about work. Learn more about good workplace communication practices.

Employers and employees are encouraged to discuss out of hours contact and set expectations that suit the workplace and the employee’s role. Where possible, there are benefits to having these conversations before out of hours contact happens.

A discussion about out of hours contact could include:

It’s important employees know when they can disconnect from work and when they may be expected to monitor, read or respond to contact.

For example, a specialist technical engineer is told that while out of hours contact isn’t common, they may be contacted out of hours in response to a critical technical outage. They don’t need to monitor emails, but will be expected to answer or return a phone call about a serious outage.

It’s important to check the relevant award, enterprise agreement or employment contract for entitlements that may apply. Learn more about Pay and wages and Employment conditions .

For example, if there’s a serious issue, an employee may prefer to be called on their personal phone so that they don’t have to monitor a work phone or email account.

For example, managers and supervisors may formalise arrangements for out of hours contact and communicate those arrangements with senior leaders. For external clients, managers and supervisors may consider whether and how they should discuss expectations about communication with their clients.

For example, the arrangement could be reviewed on a regular basis or when there’s a change in an employee’s hours (such as a change to hours or work due to a flexible work arrangement).

Employers should also consider:

For example, managers can develop their skills by:

completing our Difficult conversations in the workplace manager online course .
reading our Consultation and cooperation in the workplace guide.

Employees can develop their skills by completing our Difficult conversations in the workplace employee course .

For example, updates to position descriptions to reflect expectations for out of hours contact.

For example, recording the arrangement in writing.

Tip: Guidance on the right to disconnect

The Australian Public Service Commission has published guidance on the right to disconnect in the public service sector .

The Fair Work Commission has published a video on understanding the new right to disconnect as well as a Right to disconnect fact sheet . They’re also required to make guidelines about the operation of the right to disconnect. These are not yet available.

Disputes about an employee’s right to disconnect should first be discussed at the workplace level to try to resolve the dispute.

If that isn’t successful, employees or employers can go to the Fair Work Commission (the Commission) to deal with the dispute. The Commission can make orders or deal with the dispute in other ways. This includes making orders to stop an employee from refusing contact or to stop an employer from taking certain actions.

You can read more at the Commission’s Right to disconnect disputes page.

Tip: We’re different from the Fair Work Commission

A reminder that the Commission is the national workplace relations tribunal and registered organisations regulator.

We’re the Fair Work Ombudsman. Our role is to give you advice and assistance on workplace laws.

Learn more about the difference between us (the Fair Work Ombudsman) and the Fair Work Commission .

The right to disconnect is a workplace right under general protection laws . These laws are protected rights employees have under the Fair Work Act.

Sources reference: Fair Work Act 2009 s.333M–333W, s.340

Maximum weekly hours fact sheet
Record my hours app
Hours of work, breaks and rosters
Closing Loopholes: Right to disconnect
When overtime applies
Protections at work

The Fair Work Ombudsman acknowledges the Traditional Custodians of Country throughout Australia and their continuing connection to land, waters, skies and communities. We pay our respects to them, their Cultures, and Elders past, present and future.

Thank you for your feedback. If you would like to tell us more about the information you’ve found today you can complete our feedback form .

Please note that comments aren't monitored for personal information or workplace complaints. If you have a question or concern about your job, entitlements or obligations, please Contact us .

Bookmark to My account

Get priority support!
Save results from our Pay, Shift, Leave and Notice and Redundancy Calculators
Bookmark your favourite pages
Ask us questions and save our replies
View tailored information relevant to you.

Fair Work Online: www.fairwork.gov.au
Fair Work Infoline: 13 13 94

Need language help?

Contacting the Translating and Interpreting Service (TIS) on 13 14 50

Hearing & speech assistance

Call through the National Relay Service (NRS):

For TTY: 13 36 77 . Ask for the Fair Work Infoline 13 13 94
Speak & Listen: 1300 555 727 . Ask for the Fair Work Infoline 13 13 94

The Fair Work Ombudsman is committed to providing you with advice that you can rely on. The information contained in this fact sheet is general in nature. If you are unsure about how it applies to your situation you can call our Infoline on 13 13 94 or speak with a union, industry association or a workplace relations professional.

COMMENTS

Leave Travel Allowance (LTA)
Leave Travel Allowance/Leave Travel Concession is a type of allowance given by an employer to their employee for travelling to any place in India: either on leave, after retirement or after the termination of his service. ... Though it is not mandatory for employers to collect proof of travel, it is always advisable for employees to keep copies ...
Leave Travel Allowance (LTA)
The Leave Travel Allowance is applicable only for travel expenses. The individual can travel only with India. The individual has to keep proof of travel as it can be required for tax auditing purposes. The exemption under Leave Travel Allowance is not available for more than two children born after 1 October 1998.
LTA eligibility rules explained: Who can claim LTA?
Salaried taxpayers who have opted for the old tax regime should be aware of the exemptions and deductions they can claim to lower their tax outgo. Leave Travel Allowance (LTA) is one such exemption. Salaried taxpayers can claim LTA if it is a part of their salary or cost-to-company (CTC) structure. However, there are some restrictions and limitations to claim LTA and a taxpayer needs to ...
LTA: Know Leave Travel Allowance Tax Benefits, Eligibility
For LTA exemption, it is mandatory that the allowance that actually needs to be exempted is determined by the actual travel expenses incurred. The exemption relates to the cost of tickets for transport from the place of origin of the employee to the destination and back, by the most efficient and shortest route whether by air, rail or bus.
Leave Travel Allowance (LTA): Claim Rule, Eligibility, Tax Exemptions
Leave Travel Allowance (LTA) is a type of allowance which is provided by the employer to his employee who is travelling on leave from the work to cover his travel expenses. LTA is an important component of the salary of the employee as it is eligible for income tax exemption as per the Income Tax Act, 1961. Under Section 10 (5) of the Income ...
Leave Travel Allowance (LTA): Rules, Claim, Eligibility & Exemption
The LTA (Leave Travel Allowance) exemption applies only to the actual travel expenses incurred by the employee, such as train fare, bus fare or airfare. For example, let's say the employer provides an LTA of Rs 40,000. However, the employee's actual travel expenses amount to Rs 25,000. In this case, only Rs 25,000 will be eligible for ...
Leave Travel Allowance (LTA)
Leave Travel Allowance is an allowance employers offer their employees for domestic travel. This allowance allows employees to take a vacation where travel costs are tax-free. LTA is available for any two years within a four-year block. ... invoices provided by travel agents, etc., along with the mandatory declaration. Though employers don't ...
Leave Travel Allowance: Here is all you need to know about claiming LTA
LTA tax exemption falls under section 10(5) of the Income Tax Act, wherein the employee can get his/her travel expenses reimbursed from the employer. The expenses include only travelling expenses ...
Leave Travel Concession/Allowance (LTC/LTA)
The employee is required to submit the travel bills and other supporting documents to the employer to claim the reimbursement. What is Leave Travel Allowance? Leave Travel Concession (LTC) is a benefit provided by employers to their employees to travel within the country during their leave period. The objective of this benefit is to encourage ...
LTA exemption: What is Leave Travel Allowance and can you claim it at
Leave Travel Allowance (LTA), often included in your salary, pays for your vacation travel expenses. It also covers travel costs for family members such as spouses, children (up to two if born on ...
leave travel allowance: How to claim LTA from your employer
Leave Travel Allowance forms a part of an employee's total CTC (cost-to-company).Also known as Leave Travel Concession, an employee can claim an exemption under section 10(5) of the Income Tax Act, 1961, for expenses incurred for travelling when on leave anywhere in the country. Here, the amount you can claim as LTA, i.e., the money spent during the travel when on leave, is equal to the ...
LTA Calculator: What Are The Leave Travel Allowance Rules? Check LTA
LTA Calculation: Leave Travel Allowance (LTA) or Leave Travel Concession (LTC) is a common tax exemption available to salaried employees in the government and private sector. LTA is a part of the ...
Income Tax Treatment of Leave Travel Allowance (LTA)
Leave Travel Allowance (LTA) is basically defined as the cost of travel granted to employees to travel anywhere in India, while on leave from work. It is allowed twice in a block of four calendar years. So this benefit is available only to salaried Assessee. These blocks of 4 years are predefined by the government. These are: And so on.
LTA
LTA is the short form for Leave Travel Allowance.It is part of your CTC and can be used to make your travel costs tax-free legally in the Indian Taxation system.. Although it is good that a salaried person is exempted from paying tax on the amount, he spends on travel expenses of his family, he can only do so twice in a block of 4 years.. There are other restrictions too with respect to ...
Leave Travel Allowance: Claim Rule, Eligibility, Tax Exemptions
Leave Travel Allowance (LTA) is a special allowance provided by employers to their employees when they take leave to cover their travel expenses. It's a significant component of your salary as it qualifies for income tax exemption under the Income Tax Act of 1961. According to Section 10 (5) of the Income Tax Act, the LTA received by you won ...
Leave Travel Allowance: When is the right time to claim your LTA?
The Leave Travel Allowance (LTA) is one such exemption. LTA is given by the employers to their employees for travelling while on leave, and it is claimed as an exemption subject to fulfilment of ...
20 FAQ's for claiming Leave Travel Allowance (LTA) as per Income Tax Rules
LTA (Leave Travel Allowance), is a benefit provided by almost all employers to their employees which provide income tax benefit. One can claim LTA for two times in a block of 4 years. Employees would take leave, enjoy their travel and claim this as reimbursement where income tax is not deducted. However, there are certain Income Tax guidelines ...
Leave Travel Allowance
Final Word. Leave Travel Allowance is a benefit offered by employers to compensate for travel of the employee and close family when on leave. You can claim an LTA exemption, offered under section 10 (3) of the Income Tax Act, while filing your tax return using the old tax regime. The new tax regime, however, does not have a provision for LTA.
Leave Travel Concession Section (LTC/LTA) 10(5) of Income ...
Leave Travel Allowance or Concession is one of those Available Exemption given to Salaried Assessee from his Total taxable income as per Section 10 subsection 5 of Income Tax Act 1961. As the name itself leave travel Allowance refer an amount received by employee from his employer for leave proceeding to any place in India either on leave ...
Leave Travel Allowance (LTA)
The Leave Travel Allowance is the allowance provided by an employer to its employees for traveling. This allowance can be utilized while going on a vacation with family or alone. ... Even though the employers have the right to ask for documentary proof from the employees, if required, but it is not mandatory. However, it is advised to keep the ...
Everything about Leave Travel Allowance
Know all updates about Leave Travel Allowance (LTA/LTC)- rules & eligibility. Contact Inside Tax for ITR filing services in Delhi NCR and get help in tax saving. +918826305009 ... The employee is required to submit proof of travel like travel tickets, boarding passes, relevant invoices, etc. The other guidelines may differ according to the ...
Central govt employees, private employees can't claim LTA if they don't
Employers give Leave Travel Allowance (LTA) to reimburse employees' travel expenses incurred during a leave period. It covers expenses incurred for travel by air, train or other public transportation, but the reimbursement is based on the actual amount spent or as per the limits set by the employer or tax authorities.
Leave Travel Allowance: Through a magnifying glass
Leave Travel Allowance: Through a magnifying glass. By Guest. 3 minute read December 12, 2017. The LTA is an allowance paid to the employee by the employer when the former submits original travel tickets/invoices, which were used for travelling with their family or alone when the employee was on leave. The amount paid as LTA is tax free.
Active Duty Deployment
This page provides information TDY deployment travel to include transportation allowances, per diem for meals/incidentals and lodging expenses, miscellaneous reimbursable expenses, additional TDY allowances, documentation, things to keep in mind and submission instructions. ... Only required if taking emergency leave and if the commander ...
American Airlines Travel Agency Reference
Note: If the ticket has been exchanged by American as an INVOL submit the refund request directly with American. Refer to American Airlines Refunds.. When the flight is not cancelled or the length of delay is 90 minutes or less, a refund does not apply:. If customer elects to cancel their reservation and use the value of the ticket toward the purchase of a new ticket outside the Travel Notice ...
Right to disconnect
Allowances, penalty rates and other payments Paying wages Pay secrecy ... monitor or respond if the contact or attempted contact is required by law. Example: Employee's personal circumstances make out of hours contact unreasonable ... Elizabeth has been asked to fill in for her manager who is taking 3 months leave. During this period ...

Leave Travel Allowance (LTA) - Exemption Limit, Rules, How to Claim, Eligibility & Latest Updates

What is Leave Travel Allowance (LTA)?

Who Can Claim LTA?

Conditions for Claiming LTA

Amount of LTA/LTC Exemption

Exemption w.r.t Various Modes of Transport

Carryover of Unclaimed LTA/LTC

Procedure to Claim LTA

Multi-Destination Journey

LTA Exemption for Vacation on Holidays

Frequently Asked Questions

About the Author

Ektha Surana

Quick Summary

Leave Travel Allowance (LTA): A Comprehensive Guide To Tax Benefits, Eligibility, Claims And Exemptions

What Is Leave Travel Allowance (LTA)?

Why Is LTA Important?

What Is The Eligibility For LTA Exemption?

Who Can Claim LTA?

Conditions For Claiming LTA

How To Claim LTA?

Amount Of LTA/LTC Exemption

Unclaimed LTA

Can LTA Exemption Be Claimed On Every Vacation?

Is LTA Exemption Available In The New Tax Regime (2024-2025)?

Claiming LTA In Case Of A Job Change

Claiming LTA For Multi-Destination Journey

LTA Exemption For Vacation On Holidays

Required Documents For Claiming Tax

Benefits Of LTA

Factors To Consider Before Claiming LTA

Wrapping Up!

1. Can LTA be directly claimed in the ITR if a proof is not submitted to the employer earlier?

2. Can LTA be claimed for air travel on one side?

3. Under which section of the Income Tax Act is an exemption for LTA allowed?

4. What if the boarding pass is lost? Can LTA be claimed?

5. Is it possible to receive two LTA exemptions in a single fiscal year?

Get Quotes for Insurance

Insurance Policy KYC | Mandatory KYC Requirement by IRDAI for Insurance Policy Purchase

Demystifying Health Insurance: Exploring Policy Meaning and Coverage Options

Leave Travel Allowance (LTA) – Rules, Claims, Exemption and Eligibility

What is Leave Travel Allowance (LTA)?

People who can Claim Leave Travel Allowance (LTA)

Rules for Claiming LTA

Eligibility for Leave Travel Allowance (LTA)

LTA Exemption for Various Modes of Transportation

LTA for Multi-Destination Trips

Claiming LTA in case of a Job Change

Unclaimed LTA

LTA Exemption for Vacation on Holiday

Documents Required for Claiming LTA

Procedure to Claim LTA

FAQs about Leave Travel Allowance (LTA)

How many times can an employee claim Leave Travel Allowance?

Is international travel covered under Leave Travel Allowance?

Which section of the Income Tax Act allows an exemption for LTA?

If an employee’s parents-in-law travel with him, would the travel costs for the parents-in-law be claimed as an exemption?

Can only the travel costs of the family members be claimed as LTA if the employee does not travel?

What would happen if the employee did not travel in a block of four years?

Can I claim an LTA exemption twice in one financial year?

What is the latest block period to claim LTA exemption?

Leave a Reply Cancel reply

Schedule a Product Demo!

Popular Posts

Download the TankhaPay App

LTA Calculator: What Are The Leave Travel Allowance Rules? Check LTA Calculation Example, Eligibility, Expenses Covered, Tax Exemption - Top 10 Points

LTA Claim: Documents You Need To Submit

LTA Terms & Conditions

Need Help File Application?

LTA Bouquet of Benefits

HSA Account is Tax-Free Money, Invest in Stocks, Use for Medical Anytime

HRA Tax India – Can I Pay Rent to Wife?

How to file US Tax on NRE, NRO Interest (without 1099-INT)

Documents Required for HRA Exemption in India (Tax Saving)

Green Card Public Charge Rule Removed (H1B, i485)

Related Articles:

104 comments

Leave a Reply Cancel reply

Subscribe to Blog via Email

About Suresh KP

Portuguese Industrial Action Cancelled