[LTA] Leave Travel Allowance Rules & Exemption Guide
Leave Travel Allowance (LTA) is a type of allowance which is given to an employee from his employer to cover his travel expenses when he is on leave from work. Sometimes it is also known as Leave Travel Concession (LTC). LTA is exempt from tax u/s 10(5) of Income Tax Act, 1961.
Any travel concession or assistance received by employee from his employer for himself and his family to cover expenses incurred in travelling while on leave.
Any travel concession or assistance received by employee from his former employer for himself or his family to cover expenses incurred in travelling post retirement or termination of service.
if you have a claim of 50000 and you can claim only on travel and not on stay, food, sight seing expenses
To check your eligibility and calculate your LTC accurately, you must know the following Leave Travel Concession rules:
People incur several kinds of expenses during their holiday trip but not all of them are covered by LTA.
Expenses made on food, shopping, etc. are not tax deductible.
Only the expenses made by employee on travelling are born by the employer for which he provides Leave Travel Allowance to the employee.
The individual has to keep proof of travel as it can be required for tax auditing purposes.
Exemption is allowed for only two travels within a block of four years.
Depending on the mode of transportation chosen and connectivity of the place, amount of exemption is decided.