Thank you for signing up!

BROWSE BY TOPICS

  • Income Tax e-Filing
  • Last Date To File ITR For 2022-23
  • Income Tax Slabs FY 2023-24
  • Which Is Better: Old vs New Tax Regime For Salaried Employees?
  • House Property
  • Business, Professional & Freelance
  • Which ITR Should I File?
  • Income Tax Refunds
  • Paying Tax Due
  • Salary Income
  • Capital Gains Income
  • Other income sources
  • Advance Tax
  • Income Tax Notices

POPULAR ARTICLES

  • Budget 2023 Highlights: PDF Download, Key Takeaways, Important Points
  • Budget 2023: Full List of Cheaper and Costlier Items
  • 46th GST Council Meeting: Latest News, Highlights and Updates
  • Section 147 of the Income-tax Act, 1961 (ITA) Demystified
  • 47th GST Council meeting: Latest News, Highlights and Updates
  • How to file ITR Online - Step by Step Guide to Efile Income Tax Return, FY 2022-23 (AY 2023-24)
  • Which ITR Should I File? Types of ITR Forms for FY 2022-23 (AY 2023-24)
  • Income Tax Login – Income Tax efiling Portal Login & Registration Step-by-Step Guide
  • e-Aadhar – How to Get e-Aadhaar Card From UIDAI Website? Complete e-Aadhar Guide

RELATED ARTICLES

  • Sections 206AB and 206CCA of Income Tax: Analysis, Applicability and FAQs
  • Difference Between Assessment Year (AY) and Financial Year (FY)
  • What is Form 16? How To Download Form 16?
  • Form 15G, Form 15H to Save TDS on Interest Income
  • Parivahan‌ ‌Sewa‌, mParivahan App - Online Services, parivahan.gov.in Portal‌ Login, Vehicle Details

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

Updated on : Mar 22nd, 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 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.

LTA exemption Section 10(5)

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 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:

  • Individual  must be an employee  and should  have an LTA  component in CTC.
  • Actual journey 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.

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 such 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.

You Might be Interested in

UAN Login Aadhar PAN Link 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 Budget 2023 Highlights House Rent Allowance (HRA)

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).

About the Author

author-img

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

Facebook

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

ISO

Data Center

SSL

SSL Certified Site

128-bit encryption

  • Canada Taxation
  • Payment Management
  • Business Tips
  • Payroll and Salary
  • Accounting and Inventory
  • Knowledge Ball
  • Statistics Tutorial

Logo

LTA allowance  is a great tax-saving tool in the hands of the employee. The  LTA full form  is Leave Travel Allowance, also called LTC or Leave Travel Concession. The employer pays an allowance to the employee when he/she travels alone or with family when on leave/vacation and is a tax-free allowance. The exemption is available when proof of travel is produced to the employer who reimburses the same subject to the eligibility conditions for LTA.

What is LTA?

LTA meaning,  Leave Travel Allowance, is an allowance added to your basic pay and is provided by the employer to offset travel costs when travelling alone or with family for a vacation. It applies to within the country costs of travel.

LTA Comes Under Which Section   for IT Purposes? 

The 1961 Income Tax read and Rule 2B and Section 10(5) define the meaning, tax exemption, and conditions laid out to claim LTA tax exemption . Let us look into these briefly.

LTA Rules   for Exemption In FY 2021

The latest update makes LTA un-applicable to taxpayers under the new tax regime. Though it is well-known that Leave Travel Allowance is tax-exempt, there are some exemptions and limits on the allowance. Here’s a list of them.

  • The LTA exemption is restricted to travel costs only when the employee undertakes the trip during his leave period. 
  • The exemption does not cover all costs/expenses like food, shopping etc., incurred during the trip.
  • The tax exemption is not applicable for more than 2 children of the employee born after 1998 October 1 st . 
  • LTA exemption is applicable for 2 travel trips in a block of 4 years. (Current block period is 2014-17). 
  • The employee can carry over the exemption from this block to the next block if he has not claimed the current block.

Leave Travel Allowance Section – List Of Exempt Expenses

Here’s a list of expenses that are exempt under the LTA rules.

  • Air Travel by Economy class and limited to the lesser amount spent or costs for the shortest route.
  • Rail Travel by A.C. coach in first-class limited to lesser of the actual travel amount or the cost via the shortest route, whichever is lesser.
  • Journey performed via other transportation modes when the destination and place of origin are rail-route connected. 
  • Journey performed via other transportation modes when the destination and place of origin are not rail-route connected (fully/partially) but are connected via a recognized Public Transport system.
  • Journey performed via other transportation modes when the destination and place of origin are not connected by rail-route (fully/partially) or a recognized Public Transport system.

Also Read:  Conveyance Allowance- Definition, Limit, Exemption and Calculation 

How To Calculate LTA In Salary?

Employees are allowed to make two LTA claims in a 4-year block. T he Income Tax Department notifies the block years, which are not necessarily in line with the Financial Year used for ITR or Income Tax Return filing. For example, the previous block of 4-years was from 2014 January 1 st to 2017 December 31 st   and the current one from 2018-2021. Hence you can claim two journeys undertaken during this block of 4-years for tax exemptions. However, suppose the employee has not travelled during this block of years. In that case, the LTC concession for tax-exemption can also be carried over to the next FY or financial year and not the block of 4-years. Note that all expenses for food, stay, shopping, sightseeing, etc., are not covered. It is only the ticket or travel fare that is considered for LTA exemption.

The Block of 4 Years Explained:

Each block decided by the Government for LTA exemption comprises 4 years. The first block began in 1986. Thus the block years are 1986-89, 1990-1993, 1994-1997, 1998-2001, 2002-2005, 2006-2009, 2010-2013 and so on. The current block now is 2018-21 and the previous one from 2014-2017.

LTA Example

Let us consider how LTC is treated. For example, Raj is entitled to an LTA amount of Rs 35,000. He has claimed an amount of Rs 20,000 in FY 2017 as his leave travel claim. The LTA deduction applicable in this case is only Rs 10,000, and Rs 15,000 gets added to his taxable income. LTA is paid only as per the claim and for the shortest route from origin to destination and back. Also, Raj is allowed only 2 claims for LTC for 2014 to 17 (which is the current block). If Raj does not prefer a claim, he can carry over the leave travel entitlement to the next FY. This claim is not to be considered in the next block of years. Here’s a chart that explains when you can carry it over.

How To Claim Leave Travel Allowance ?

The employers don’t need to submit travel proof of the employees to the tax authorities for claims and assessment of LTA. But they generally have the right to collect such documentary proof for reimbursements. Hence, you should keep travel proof such as flight tickets, boarding passes, travel agent invoices, on-duty passes, or documentary travel proof. At times, the assessing tax officer or company auditors may also scrutinize these proofs submitted by the employee.

The  LTA in salary structure  is not like other allowances and is not common in your take-home salary. Always check the pay structure before claiming LTA. The amount available to the employee can vary from one person to another. You need to have LTA eligibility, produce bills/ tickets, etc., as proof of travel to your employer. 

The procedure followed to make an LTA claim is as follows.

  • The company announces the dates before which LTA travel bills claims for the current block are to be made.
  • You need to complete making the LTA calculation , fill in the applicable LTC claim forms, attach your travel documents like a boarding pass, duty pass, flight or travel tickets, boarding pass etc., and submit it to the accounts or HR teams.
  • The LTA claim forms need to be submitted before your employer calculates your final tax liability.
  • Your employer will issue a Form-16 after certifying your LTA claim. 

Eligibility For Leave Travel Allowance

To be eligible to claim LTA, you will need to travel and should have taken leave to travel. Your trip can be for travel in India only and without or with family members. The LTA rules specify that the LTA benefit is not an entitlement offered to all employees. Instead, it is dependent on factors like the employee’s pay scale, designation etc. The employer makes this entitlement to an employee based on his discretion and decides the LTA amount specified in the salary contract’s leave travel allowance section .

LTA Benefits

Leave Travel Concession or Allowance is an important part of your salary structure and is also a great saving tax tool under the Income Tax Act 1961. 

  • LTA is an addition to your basic salary. However, the entitlement is based on several factors like designation, pay scale, position, etc. 
  • You can only claim the benefits of LTC/LTA if you have LTA entitlement and it is a part of your salary structure. 
  • LTA can be claimed when you travel during your leave period, whether alone or with your family. The leave travel allowance covers the family meaning the spouse, parents, children and siblings when you travel with them.
  • The LTC amount does not cover expenses like hotel room rents, food, etc.
  • It can be claimed for travel by flight, rail, public transport or other modes like taxi, car, etc., by the shortest route between origin to destination and back.
  • LTA amounts cover only travel in India and not travel abroad.

Also Read:  Dearness Allowance (DA)- Defination, Types & DA Calculation

Documents For LTA Claim 

To claim LTC or LTA, an employee has to submit to the employer

  • Travel bills, boarding pass, flight or rail tickets and other documents.

Once you submit the LTC claim and the employer approves it, Form 16 issued to you by your employer will contain details of the allowance paid for and tax-free. All other travel expenses will be treated as taxable.

The Bottom Line:

The article has briefly discussed what is meant by LTA/ LTC, which means Leave Travel Allowance or Leave Travel Concession . This allowance is made to cover the employee’s travel expenses when on leave with or without his family. It is used to retain employees and keep them healthy and happy.

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories

Everything you need on Tax & Corporate Laws. Authentic Databases, Books, Journals, Practice Modules, Exam Platforms, and More effortlessly with one click.

How to Create a Stem-and-Leaf Plot in SPSS

How to create a correlation matrix in spss, excel: how to use if function with text values.

@2020 - All Right Reserved. Designed and Developed by Tutoraspire

LOGO

Your favourite senior outside college

Home » Job Tips » Salary » Leave Travel Allowance

What is LTA? – Eligibility Criteria, Process, Calculation, & More

Save Tax While You Travel with LTA

Introduced in 1986, the LTA scheme was initially rolled out for the government and public sector undertaking employees in India. Later, private sector employees were included in it too. Since then a number of employees have utilized the LTA scheme for their travel expenses. If you are a salaried employee going on leave soon, make sure you are well-versed with LTA.

This blog will help you understand what is LTA , the eligibility criteria to claim it, the procedure, conditions, and documents required, and even the restrictions and benefits of LTA.

Table of Contents

What is Leave Travel Allowance (LTA) in Salary ?

Leave Travel Allowance or LTA is an allowance that employers pay to their employees when the latter is on leave and traveling, either alone or with family within India. The amount paid to the employee as LTA is tax-free subject to certain conditions. 

The conditions and amount of the leave travel allowance are given in Section 10(5) of the Income Tax Act, 1961 along with Rule 2B of Income Tax Rules. It is important to note that employees who have opted for the new tax regime are not eligible to claim LTA. Learn personal finance to expand your knowledge on taxation and savings to manage your finances better.

Find and Apply Banner

Eligibility Criteria for LTA Exemption

The eligibility criteria that the employees must meet to claim leave travel allowance are as follows:

  • The exemption is for salaried employees who have incurred expenses on travel. 
  • The travel destination must be within India since international travel is not included in the exemption.
  • Only those employees who have taken a leave from work for the purpose of travel can make an LTA claim . 
  • Employees can claim LTA for a maximum of two journeys undertaken in a block of four calendar years. The current block of travel is from 2022 to 2025.
  • Employees should possess proof of travel expenses in the form of boarding passes, hotel bills, etc. 
  • LTA exemption can be claimed only within the specified period, after which it is deemed to lapse. 

Procedure to Claim LTA

The procedure to claim LTA is simple. Follow these steps to claim LTA in salary:

  • Check Your Eligibility- Ensure you are eligible to claim LTA according to your employer’s policies as well. There is a minimum number of years of service requirement, specified by the employer before you can claim any exemption. Hence, check it before applying for LTA. 
  • Plan Your Travel- To avoid any last-minute problems, make sure to plan your travel and keep proof of every travel expense, especially the tickets and the boarding passes. 
  • Apply for LTA- In the LTA application form provided by the employer, fill out all the details such as date of travel, mode of travel, destination, costs incurred, number of family members, etc.
  • Attach Relevant Proof Documents- Attach the travel proofs that you have collected with your LTA application. 
  • Await Approval and Reimbursement- Now all you have to do is wait for your LTA claim application to be approved and then the reimbursement. Employers can either combine the LTA allowance with the salary or as a separate payment for reimbursement.

NOTE: An important point that the employees should keep in mind is that if only one LTA is claimed out of two within the block year, then the employee can claim the unused one in the next block. But this travel journey has to be made in the first calendar year of the next block, after which the unutilized LTA will expire. 

Documents Required for LTA Claim

The following are the documents required to be submitted by salaried employees to their employers:

  • Travel tickets (for train, road, or air)
  • Proof of expenses such as boarding passes, hotel bills, cab receipts, etc. 
  • Leave approval application showing that the leave was taken to travel.
  • LTA form duly filled in by the employee, detailing the exempt amount being claimed. It is provided by the employer. 
  • Travel itinerary that outlines the places traveled and the duration of travel.
  • PAN card details of the employee are to be provided to the employer. 
  • Bank account details for receiving reimbursement for travel expenses.

Conditions for Claiming LTA

There are certain conditions that the employees must fulfill to claim LTA. These are as follows:

  • The employee must actually travel to claim LTA.
  • The family members covered under the rules are spouses, children, dependent parents, and dependent siblings. They must be traveling with the employee and not separately.
  • The salary structure of the employee must contain LTA components.
  • Only two children born on or after 1st October 1998 are covered under the exemption. There is no restriction regarding children born before this date. 
  • The LTA claim can be made for any mode of travel, that is, by road, train, or air. 

LTA Exemption Rules for Various Modes of Transport

LTA covers the various modes of transport for travel. Refer to the given table to understand the exemption rules for different modes of transport:

How is LTA Calculated?

Here are the steps followed to calculate the LTA:

  • First employee’s eligibility is checked based on the conditions prescribed in the employer’s policy and IncomeTax Act,1961.
  • Then the cost of travel for the employee and their family members is calculated. 
  • Now the maximum LTA exemption is calculated. The calculation is based on the fare for the shortest route to the destination by economy class of the national carrier. 
  • Note that if the cost of travel is less than the maximum LTA calculated, then an exemption can be claimed for the actual cost of travel.
  • But if the cost of travel is more than the maximum LTA calculated, then an amount only up to the maximum LTA exempt amount can be claimed. The excesses can be claimed as taxable income. 
  • Once we have the final amount after all the calculations, the exemption amount is deducted from the employee’s taxable income.

LTA Claim Restrictions

Though LTA is a beneficial tax exemption for employees, there are certain restrictions as well. These are:

  • LTA can be claimed only for domestic travel, that is, within the country, and not on international travel.
  • The number of times you can claim LTA is limited. 
  • Employees need to maintain proof of travel which can be a task for some.
  • LTA exemption covers only the actual travel expenses and not the other expenses such as hotel accommodation and food bills. 
  • No LTA can be claimed can be made on cash payments. You will only get an LTA allowance on payments made through bank accounts online, cheques, or any digital payment mode . 

Benefits of LTA

The following are some important benefits of LTA in salary:

  • LTA is an essential source of saving tax.
  • It encourages tourism and aids the travel industry.
  • It also helps in cost optimization as the employees do not have to spend much. They also plan to keep in mind the allowance they will receive and the best options they have for other expenses. 
  • LTA plays a role in maintaining the work-life balance as the employees can travel with their families and spend some time with them. 
  • The LTA exemption claim is also flexible as it includes the travel expenses of the accompanying family members as well. Also, you can choose the mode of travel according to your requirement since all three–train, air, and road are covered under LTA. 

We have discussed what is LTA , the eligibility to receive LTA allowance, the procedure to claim LTA, the documents required, the conditions to be met, how it is calculated, and the restrictions and benefits of LTA. All of this information will help you in proceeding with your LTA application comfortably.

  • ← Previous
  • Next →

leave travel allowance calculation in salary

Harshita is an English Literature graduate from the University of Delhi with 3 years of experience in Content Writing and Editing. Dedicated to her craft, she loves creating magic with words. She is a big fan of hoarding cute planners and journals and can be seen watching FRIENDS (almost EVERYTIME) in her spare time. Her meticulous attention to detail makes her stand out from the crowd. A typo epidemic is her worst nightmare!

Related Post

leave travel allowance calculation in salary

Top 14 Employee Benefits: Examples & Importance

What are the factors you consider while hunting for a job? Qualifications, salary, traveling time? Another essential factor is the employee benefits that the company offers. Several companies provide additional

leave travel allowance calculation in salary

Difference Between CTC and In-Hand Salary [How to Calculate it?]

Are you beginning your professional journey soon? If yes, gaining knowledge about financial terms you will encounter several times becomes necessary. You must know that the CTC offered is not

leave travel allowance calculation in salary

Gross Salary vs Net Salary: Difference Between Gross and Net Salary

On your payday, your salary seems to be less than what you bargained for. That’s because of the distinction between gross salary vs net salary. To understand this it is

leave travel allowance calculation in salary

How To Ask for a Salary Advance Professionally? Format & Sample Guide

Personal finance management might get shaky with unexpected and unforeseen financial difficulties and challenges. How you manage your finances to meet your needs in a genuinely dire situation may be

Leave Travel Allowance in Salary: Claim Rule, Eligibility, Tax Exemptions

  • Leave Travel Allowance in Salary: Claim Rule, Eligibility, Tax Exemptions

Medical-Allowance-in-Salary

Medical Allowance in Salary: Everything You Need to Know

professional-tax-in-salary

Professional Tax in India: Everything You Need to Know

leave travel allowance calculation in salary

Are you longing for a much-needed getaway while also trying to figure out how to reduce your tax burden? Look nowhere else! Your travel wishes can come true with LTA, also referred to as Leave Travel Allowance . Employers provide their staff with this wonderful tax benefit, which enables them to pay less in taxes for domestic travel expenses. Excited? Let’s delve into the LTA world, how it functions, and the laws that control it. So without waiting further, let’s dive in!

What is LTA in Salary?

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’t be considered as part of your taxable income for the year.

What Is the Eligibility for LTA?

To avail of the LTA exemption, you can claim it only for the actual travel costs like airfare, rail fare, or bus fare incurred during your journey. However, expenses for local conveyance, sightseeing, accommodation, and food are not eligible for this exemption. Keep in mind that the exemption is limited to the LTA provided by your employer.

For instance, if your employer grants you an LTA of Rs. 30,000, but you actually spend Rs. 20,000 on eligible travel costs, the exemption will be applicable only to the extent of Rs. 20,000. The remaining Rs. 10,000 would be included in your taxable salary income.

How to Claim LTA?

To claim your Leave Travel Allowance, there are some important conditions to meet:

  • The actual journey is a must to claim the exemption.
  • The exemption is applicable only for domestic travel within India; no international trips are covered.
  • You can claim the exemption for yourself or with your family. ‘Family’ includes your spouse, children, and wholly or mainly dependent parents, brothers, and sisters.
  • However, the exemption is not available for more than two children born after 1 October 1998. Children born before that date have no such restrictions. Additionally, this restriction does not apply to cases of multiple births on a second occasion after having one child.

Documents Required to Claim LTA

To claim your Leave Travel Allowance, you’ll need to provide proof of travel, such as:

  • Flight/Train tickets
  • Boarding passes
  • Duty passes
  • Bills from travel agents
  • Any other documents required by your employer or evaluating officer.

LTA Exemption

How to calculate lta in salary.

Computing your Leave Travel Allowance is easy! The LTA is exempted up to a certain limit while calculating your income from salaries. The outstanding balance will be subject to taxation based on your applicable Income Tax bracket.

For example, if you received an LTA of ₹6,500 and you spent ₹5,500 on eligible travel expenses, you can claim an exemption of ₹5,500. The remaining ₹1,000 would be added to your taxable salary.

What Are the Restrictions on Leave Travel Allowance?

There are some conditions under which tax exemption is not available for Leave Travel Allowance:

  • LTA doesn’t cover food expenses incurred during travel.
  • International travel is not eligible for exemption.
  • Salaried employees with more than two children born after October 1, 1998, cannot avail of the exemption.
  • You cannot claim LTA more than twice in a block of 4 years.

Note: If you haven’t claimed LTA in a specific block year, you can carry it forward to the next block and use it in the first year of the next block.

What is the Leave Travel Allowance (LTA) percentage in salary?

Is the lta amount included in my take-home salary, how can i claim lta for a multi-destination journey.

Now that you’ve understood the ins and outs of leave travel allowance, get ready to enjoy the benefits it offers! Just remember, this allowance may not be applicable if you choose to follow the new tax regime. Happy travels!

Priynka Rao

Priynka Rao

Related posts.

salary

What Is CTC, Gross And Net Salary?

what is PF

What Is PF In Salary?

how to calculate hra in salary

A Step-by-Step Guide on How to Calculate HRA in Salary

Leave a reply cancel reply.

You must be logged in to post a comment.

  • Customer Care Number

Internet banking

  • NRI Banking
  • Money2World
  • Money2India

Offers especially for you!

Open an Insta Save Account.

Open an Insta Save Account.

No Paperwork, No Branch Visits, No Hassle!

ICICI Bank Credit Cards

Save more on your everyday expenses.

ICICI Bank Personal Loans

ICICI Bank Personal Loans

For your safe, comfortable, and convenient travel needs

ICICI Bank Home Loans

ICICI Bank Home Loans

The key to your Dream Home, within easy reach

campus-power-logo

Campus Power - from a dream to a degree, with you at every step.

Solutions for student, parents and institutes.

Alt text

Just getting returns on your investment?

Save Tax too, while you build your corpus!

Manage all your utility bills, smartly.

Manage all your utility bills, smartly.

Pay bills easily, using Internet Banking.

ICICI Bank Two-Wheeler Loan

ICICI Bank Two-Wheeler Loan

Get your dream bike now!

ICICI Bank FD

ICICI Bank FD

Choose certainity during uncertain times.

ICICI Bank PPF Account

ICICI Bank PPF Account

A blessing for wealth creation is here for you!

Your guide to Personal Finance

Your guide to Personal Finance

A refreshing way to learn all about Personal Finance.

All it takes is 5 minutes!

All it takes is 5 minutes!

Instant payout on selling shares, with the ICICIdirect Prime Account.

ICICI Bank Car Loan

ICICI Bank Car Loan

Experience a seamless Car Loan process!

  • Leave Travel Allowance

PLAN RETIREMENT

Want us to help you with anything? Request a Call back

Thank you for your request..

Your reference number is CRM

Our executive will contact you shortly

  • Introduction
  • Tax Return Dates
  • House Rent Allowance
  • Income Tax Deductions
  • Conveyence Allowance
  • Medical Bills Exemption in India
  • Provident Fund
  • E filing and E verify Income Tax Return
  • Steps for E filing and E verifying
  • Income Tax Refund

Your reference number is CRM 786578956

Sorry! Please check back in a few minutes as an error has occurred.

Leave travel allowance - provision, exemption & calculation.

Read about the Leave Travel Allowance (LTA) that is provided to the employees for travelling. The exemption is restricted to fare cost for touring in India.

The Leave Travel Allowance is an allowance given by the employers to their employees, which can be utilised when they go for a vacation. The employee needs to submit the actual bills to the company for claiming LTA. The amount of LTA provided is different for different employers depending upon the employee's working position. Leave Travel Allowance can also be referred as Leave travel concession (LTC).

The amount received as LTA is exempt to a specified limit while computing Income from Salaries. The remaining amount would be taxed as per Income tax slab rates. The Leave Travel Allowance calculation is as under:

LTA Rules for Exemption u/s 10(5)

LTA Exemption is available for travel allowance given by the employer to the employee or his family. The exemption is claimed for two journeys in a block of four years. Presently, the block of 2014-2017 is going on. Income Tax Department makes these blocks. The exemption if remains unclaimed can be carried forward to next year. The LTA rules for exemption are as follows:

  • One can travel any place in India. No international trips are considered.
  • LTA Exemption is not allowed if it is encashed by the employee without going on any journey. The whole LTA amount is charged to tax.
  • The family of the employee can also take a tour without the employee and still claim exemption u/s 10(5). The family here refers to employee's spouse, two children and wholly dependent parents or siblings of the employee.
  • The exemption is available for touring while in service or after termination or retirement from service.
  • The travel cost is only taken into consideration for exemption. No other amounts are qualified for deduction.

The amounts permitted to be claimed as LTA exemption

  • If the employee travels through air, an economy class fare of the Airlines is allowed as an exemption.
  • If the employee does not travel through air and the places are connected through rail, AC First Class Rail fare is granted as an exemption.
  • If the employee does not travel by rail or air and the places are also not connected by rail or air,
  • Where Recognised mode of transport is available, First or Deluxe Class fare of such transport is allowed as an exemption;
  • Where Recognised form of transportation is not available, an amount equal to the AC First Class Rail fare (the distance of the shortest route is considered) is allowed as an exemption.

SCROLL TO TOP

play-arrow

leave travel allowance calculation in salary

Leave Travel Allowance (LTA): Benefits, How It Is Calculated and Exemption

Best short-term mutual funds

Last Updated on May 24, 2022 by

Employers provide various allowances to their employees that form a part of their overall salary package. One such allowance is the leave travel allowance, also known as leave travel concession. What is best is that you can claim a deduction on this amount while filing your taxes. Let us understand the provisions of the Income Tax Act regarding LTA.

Table of Contents

What is a leave travel allowance?

Employers provide their employees with Leave Travel Allowance (LTA) as part of their CTC . This is given for the purpose of travelling while on leave. Section 10(5) of the Income Tax Act, 1961 provides the rules regarding LTA and how you can claim a deduction on it while filing your tax returns . 

Let us see how and when it is allowed. 

What are the conditions to claim a deduction on LTA?

You can claim a deduction for the leave travel allowance subject to the following rules:

  • There were expenses on an actual journey. The journey can be via any mode of transport, including air, rail, and road.
  • You cannot claim expenses on any other expenses during the journey. For example, expenditure on your hotel stay, lunch, or sightseeing cannot be deducted.
  • You can only claim the deduction on domestic travel. International travel is not included under this provision.
  • You can claim your travel expenses and those of your family if they are travelling with you. For this purpose, ‘family’ includes your spouse, children, dependent parents, and siblings.
  • The claim can be made only for two children if they are born after 1 October 1998. If a child is born prior, no such restriction is applicable. 

How much can you claim as a deduction?

The Income Tax Act has prescribed limits on the amount that can be claimed as a deduction. It is as follows:

1. Air travel

The maximum amount you can claim is limited to the economy fare of the national carrier’s airline. You must take into account the cost of the shortest path to your destination.

2. Travel between places connected by rail

If the two locations are connected by rail, the deduction amount is determined as follows: 

  • The price of a first-class AC ticket for the quickest route to the destination.
  • The amount actually spent.

Whichever is less. Except for air travel, this applies to all types of transportation. So, whether you’re travelling by rail or by car, you must adhere to this guideline.

3. Travel between places not connected by rail but other modes of public transport

In this case, the amount of deduction is taken as the lower of the following:

  • The fare of a first-class or deluxe class ticket of the recognised mode of travel. The price for the shortest route is taken.
  • The actual amount spent.

4. Travel between places not connected by any recognised mode of public transport

In such a case, assume that the distance is covered as if you travelled by train. The amount of deduction is restricted to the first-class AC rail fare. The distance covered via the shortest route is considered.  

5. Travel to multiple destinations

Moreover, you may be travelling to multiple places on your journey. Here, the exemption will be calculated based on the travel fare of the shortest route between the place of origin and your farthest destination.

How to claim the deduction on LTA?

To claim the deduction, you must first have valid proof of the expense. This can be the rail or bus ticket, your flight’s boarding pass, or any such document. The rules regarding LTA are determined mainly by the employer. In fact, the Income Tax Act does not make it necessary for you to maintain valid proof. However, you must always keep it handy as you may require to furnish it to the employer or tax authorities. 

Moreover, you cannot claim a deduction on LTA every financial year. You can only claim it for two journeys in a block year. 

But, what is a block year? Let us explain it in detail.

A block year is a set of 4 calendar yrs. The government determines it for the purpose of calculating LTA claims. This was first established in 1986, making the first block period from 1986 to 1989. At present, the block period applicable is between 2022-2025. 

If you do not claim LTA in a block year, it can be carried forward to the next. Let us understand the rules regarding the same.

Carry forward of LTA

The unclaimed LTA on one or two journeys is carried forward to the subsequent block year. However, you must claim the allowance within the first calendar year of the block.

For example, you only make one LTA claim in the 2018-2021 block period. This leaves one unclaimed journey that is carried forward to the 2022-2025 block. You may now claim a total of three LTAs in the current block. However, the carried forward claim must be made during 2022 itself. 

Once you calculate your deduction amount, you can claim it while filing your tax return. Any excess amount on account of LTA forms a part of your salary. This is taxable as per your tax slab .

In conclusion  

Leave Travel Allowance is a part of your CTC that the employer provides. It serves as compensation that you receive while travelling on leave. You can claim a deduction on LTA while filing your tax returns. Such a claim can be made twice in a block year. This allowance proves beneficial for employees seeking some relief on their travelling expenses.

  • Recent Posts

Manonmayi

  • Best Tax Saving ELSS Mutual Funds in India - Sep 27, 2023
  • Loan Against a Fixed Deposit: Eligibility Criteria, Pros & Cons, and Interest Rates - Sep 7, 2023
  • 6 Types of Life Insurance Policies Available in India in 2023 - May 8, 2023

Related Posts

post office savings scheme

10 Best Investments for Girl Child in India (2024)

large cap mutual funds

Top 10 Large Cap Mutual Funds in 2023

Best bank for home loan

Loan Against a Fixed Deposit: Eligibility Criteria, Pros & Cons, and Interest Rates

guest

  • Mutual Funds
  • Fundamental analysis
  • Technical analysis
  • Investing psychology
  • Saving Schemes
  • Passive income
  • Credit score
  • Investments
  • Risk management
  • Regulations
  • Portfolio management
  • Current Events
  • Company Reports
  • Market Experts
  • How to Use Tickertape
  • Announcements
  • Scams In Finance

Type above and press Enter to search. Press Esc to cancel.

The blog posts/articles on our platform are purely the author’s personal opinion and do not necessarily represent the views of Anchorage Technologies Private Limited (ATPL) or any of its associates. The content in these posts/articles is for informational and educational purposes only and should not be construed as professional financial advice. Should you need such advice, please consult a professional financial or tax advisor. The content on our platform may include opinions, analysis, or commentary, which are subject to change, without notice, based on market conditions or other factors. Further, the use of any third-party websites or services linked on the website is at the user's discretion and risk. ATPL is not responsible for the content, accuracy, or security of external sites. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. The examples and/or securities quoted (if any) are for illustration only and are not recommendatory. Any reliance you place on such information is strictly at your own risk. In no event will ATPL be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.

By accessing this platform and its blog section, you acknowledge and agree to the Terms and Conditions of this website, Privacy Policy and Disclaimer .

Coverfox.com

  • Car Insurance
  • Third party car insurance
  • Comprehensive car insurance
  • Car insurance calculator
  • New car insurance
  • Zero Dep Car Insurance
  • Buy Car Insurance
  • Compare Car Insurance
  • Car Insurance Articles
  • Cashless Garages
  • Two Wheeler Insurance
  • Two Wheeler Insurance Companies
  • Two Wheeler Insurance Claim
  • Two Wheeler premium Calculator
  • Third party Bike insurance
  • Multiyear Bike Insurance
  • Bike Insurance Articles
  • Health Insurance
  • Mediclaim Policy
  • Individual Health Insurance plans
  • Critical illness insurance
  • Senior citizen health insurance
  • Arogya sanjeevani policy
  • Coronavirus Health insurance
  • Health Insurance Articles
  • Network Hospitals
  • Term Insurance
  • Life insurance
  • Life Insurance calculator
  • Term Insurance calculator
  • Life Insurance Plans
  • 1 crore term insurance
  • Compare Term Insurance
  • Buy Term Insurance
  • Term Insurance Renewals
  • Term Insurance Articles
  • Life Insurance Articles
  • Insurance Blog

Mediclaim Plans starting @ Rs 250* / month

leave travel allowance calculation in salary

Leave Travel Allowance (LTA)

There are different tax benefits like deductions and exemptions under the Income Tax Act, 1961 , available to salaried class. Deductions include premium paid towards life insurance policies, housing loan interest, etc. which get reduced or deducted from total taxable income. On the other hand, exemptions do not get counted in the total taxable income. These exemptions also help the employer to structure the salary of the employee in a tax efficient manner. One of the exemptions which is commonly used by many employers is Leave Travel Allowance (LTA). The exemption is also available for LTA received from past employer with regards to travel after the retirement of service. This is a common benefit which can be seen in the case of employees working in the government sector. The Finance Minister Mr. Arun Jaitley, in Budget 2018 reintroduced standard deduction of Rs. 40,000. Standard deduction replaces the deductions available under the heads of Travel Allowance and Medical Allowance.

What is Leave Travel Allowance?

Leave Travel Allowance, as the name suggests, is a tax exemption for an allowance paid to the employee by the employer for travel expenses incurred while he or she is on leave. There are many conditions to Leave Travel Allowance and hence one needs to plan their travel accordingly for the purpose of claiming LTA exemption successfully. The Income Tax Department has listed down the rules and regulations with regards to claiming exemptions under LTA.

Conditions for claiming LTA

Let’s go through the conditions and obligations necessary for claiming the exemption.

The claimant needs to cover the actual journey in order to be eligible for claiming the exemption.

The travel should be within the boundaries of the country. Hence, international travel is not eligible to be claimed or covered under LTA.

To be eligible for exemption, the employee or the claimant must be travelling alone or with his/her family. The definition of family includes the spouse of the employee, children, dependent parents, siblings of the employee. The exemption is limited to only two children of the employee who are born after 1st October, 1998. This means children born before 1 October 1998 do not come under the restriction of two children.

LTA exemption

Leave Travel Allowance exemption is given only on the actual cost of travel which is the transport fare incurred on bus, airplane or railway. No other expenses of travel, like sightseeing, hotel stay, expenses on food etc., can be used for LTA exemption. The actual exemption depends on the LTA provided by the employer.

Illustration – If the LTA given by the employer is INR 35,000 and actual eligible cost of travel incurred by the employee is INR 25,000, then the exemption will be granted on only INR 25,000 and balance INR 10,000 would be included in taxable salary income.

Exemption with regards to various mode of transport

LTC Block Years

Block year is decided by the government for the LTA exemption, and it is different from the financial year. Block year comprises of a batch of 4 years each. The first block year started in the year 1986. The list of block years has since been 1986 to 1989, 1990 to 93, 1994 to 97, 1998 to 2001, 2002 to 05, 2006 to 09, 2010 to 13 and so on. The current running block year is from the period of year 2018 to 2021. The preceding block year was from year 2014 to 2017.

Carryover of unclaimed LTA

If an employee has not availed the exemption with regards to one or two journey(s) in the period of 4 years in block year then he/she is allowed to carry over such exemption to the next block. This is provided that he or she avails the benefit in the very first calendar year of the immediately following block. Below is an illustration for better understanding.

In the below case, the carry over exemption is claimed in the first calendar year of immediately following block

Case 2 - Where carry over exemption is not claimed by the employee in the first calendar year of immediately following block

Procedure to claim LTA

The procedure to claim LTA is normally depends on the employer. The employer announces the period and due date within which the employees can submit their proof of travel documents such as tickets (in original), invoices, boarding pass etc. along with necessary declaration. While it isn’t always compulsory to submit documents i.e. travel tickets, to the employer, but it is advised to always keep the copies available with one. This is because of the following reasons a) Tax Authorities can demand the same anytime for verification or if there is any enquiry b) It is advisable to submit them to the employer to ensure tax calculations are done correctly.

Benefits of Leave Travel Allowance (LTA)

LTA (Leave Travel Allowance) is an important salary component for an employee which helps him/her save income tax. The travel fare or benefit is eligible for journeys taken within the boundaries of the country. Any other bill apart from travel fare cannot be used for exemption. The employee is eligible to produce travel related bills for the journey taken in an airplane, train or bus or any other authorised mode of public transport and save on taxable income. The employer adds LTA to the salary structure based on different factors such as pay-scale, job responsibilities, the title of job etc. LTA also covers travel of close family members such as spouse, brother, sister, parents, and kids provided they have taken the same journey with you.

Calculation of Leave Travel Allowance

An employee is allowed to make an LTA claim for two journeys in a single block which comprises of 4 years. These blocks are different from financial years declared by the Income Tax Department.

Presently we are in the block year running from Jan 2018 to Dec 2021. The employee is eligible to claim for two journeys in this block year. However, if the employee does not make any claim in one year then it moves on to the next year but not next block. LTA exemption can only be taken for ticket or travel fare and no other expense can be included or will be eligible for LTA.

LTA Eligibility

Not all employees can be given the benefit of LTA by the employer. It is dependent on the job role, job title, salary grade, etc. The employer makes a decision on the amount to be allocated for LTA to an employee. To claim an LTA, an employee has to travel within the block year (within India). It could be a round trip with family members or solo trip.

LTA Example:

Let’s take a case of Mr. Prem who has been given LTA by the employer of INR 30,000. Mr. Prem takes a trip but the fare ticket expenses come to only INR 25,000. In this case, the eligibility for the exemption that can be claimed by Mr. Prem will be limited to INR 25,000 only and not INR 30,000 granted the employer. This is because the expenses for actual travel will be taken into consideration and cost of food or accommodation cannot be claimed under LTA.

leave travel allowance calculation in salary

FAQs About Medical Allowance and Reimbursements

How many times can an employee claim leave travel allowance in a block year?

An employee can claim Leave Travel Allowance only twice in a single block of 4 years.

Is international travel or vacation by employee covered under leave travel allowance?

No, LTA is provided only for travel taken within the boundaries of India.

Can leave travel allowance be carried forward?

LTA can be carried forward to the next block but it needs to be utilised within the first year of the next block.

Read More About Tax

Understanding Tax Capital Gains Tax on Shares Challan 280 Claiming Interest on Home Loan And HRA Custom Duty Excise Duty Direct Tax Direct Versus Indirect Taxes Insurance and Taxes Advance Tax Minimum Alternate Tax (MAT) OLTAS Sales Tax Self Assessment Tax Tax Calendar TIN Number Tax Planning

leave travel allowance calculation in salary

mail

Sign In to Digit

  • Car Insurance
  • Two Wheeler/Bike Insurance
  • Commercial Vehicle Insurance
  • Taxi/Cab Insurance
  • Auto Rickshaw Insurance
  • Truck Insurance
  • Health Insurance
  • Super Top-up Health Insurance
  • Arogya Sanjeevani Policy
  • Corporate Health Insurance
  • Health Insurance Portability
  • International Travel Insurance
  • Shop Insurance
  • Home Insurance
  • Digit Life Insurance (clicking here will take you to Digit Life Website)

File a Claim

File health claim, file motor claim for garages, check health claim status, digit cashless garages, digit cashless hospitals, anywhere cashless hospitals, become digit posp, check pending challans, free credit score check, download digit policy, download digit app, marine open certificate issuance, grievance redressal procedure, irdai's call centre feedback survey.

  • Car Insurance 25% OFF
  • Two Wheeler/Bike Insurance 25% OFF
  • Commercial Vehicle Insurance 25% OFF
  • Taxi/Cab Insurance 25% OFF
  • Auto Rickshaw Insurance 25% OFF
  • Truck Insurance 25% OFF
  • Health Insurance 25% OFF
  • Super Top-up Health Insurance 25% OFF
  • Arogya Sanjeevani Policy 25% OFF
  • Corporate Health Insurance 25% OFF
  • Health Insurance Portability 25% OFF
  • International Travel Insurance 25% OFF
  • Shop Insurance 25% OFF
  • Home Insurance 25% OFF
  • Digit Life Insurance (clicking here will take you to Digit Life Website) 25% OFF
  • हिंदी English

Download Policy

Our WhatsApp number cannot be used for calls. This is a chat only number.

 alt=

More Products

 alt=

Trusted by 3 Crore+ Indians

Third-party premium has changed from 1st June. Renew now

Try again later

I agree to the  Terms & Conditions

5" ng-bind="carWheelerCtrl.lastVisitedData.vehicle.licensePlateNumber">

Terms and conditions

{{bikeCtrl.lastVisitedData.vehicle.makeModel | toTitleCase}} {{bikeCtrl.lastVisitedData.vehicle.variant? (bikeCtrl.lastVisitedData.vehicle.variant|toTitleCase): (bikeCtrl.lastVisitedData.vehicleCharacteristics.vehicleType | toTitleCase)}}

5"> {{bikeCtrl.lastVisitedData.vehicle.licensePlateNumber}}

{{bikeCtrl.selectedPlanDisplay[bikeCtrl.lastVisitedData.dropOffSelectedPlan? bikeCtrl.lastVisitedData.dropOffSelectedPlan: bikeCtrl.lastVisitedData.selectedPlan]}}

₹{{((bikeCtrl.lastVisitedData.dropOffSelectedPlan ? bikeCtrl.lastVisitedData.dropOffGrossPremium:bikeCtrl.lastVisitedData.chosePlan.grossPremium) .replace('INR ','')).split('.')[0] | rupeeFormatWithComma}} (Incl 18% GST)

5" ng-bind="twoWheelerCtrl.lastVisitedData.vehicle.licensePlateNumber">

Most Popular (You can select more than one)

{{geography.description}}

Popular Countries (You can select more than one)

As mandated by Spanish Authorities your travel insurance needs to extend 15 days after your trip ends. We will extend your coverage period accordingly.

In case, you wish to buy a plan for your siblings, aunts, uncles or any other relatives, you can buy a separate plan for them.

Try agian later

Port my existing Policy

Please accept the T&C

(Incl 18% GST) -->

You can select more than one member

  • - healthCtrl.maxChildCount-1}"> + healthCtrl.maxChildCount-1 && healthCtrl.lastAdded===familyMember.name">Max kids (s)

local_shipping Continue with

5" ng-bind="cvCtrl.lastVisitedData.vehicle.licensePlateNumber">

Which countries are you visiting?

{{travelCtrl.countriesList}} Edit

  • {{country}}

Leaving date

{{travelCtrl.startDate}} Edit

Return date

{{travelCtrl.endDate}} Edit

leave travel allowance calculation in salary

Everything about Leave Travel Allowance Explained

lt allowance

The Tax Exemption is a statutory rule that allows monetary exclusion or reduction of the total taxable income. One such exemption available and utilised by employees is Leave Travel Allowance.

Curious to know about Leave Travel Allowance? Read along!

What Is a Leave Travel Allowance?

leave allowance travel

Leave Travel Allowance refers to a kind of allowance that employers provide to employees for travel. This allowance covers domestic travel costs when employees are on leave from work.

Now that individuals know what is LTA in salary, let’s focus on the exemption for FY 2023-24, a list of expenses exempted under LTA and other details., a list of expenses exempted under LTA and other details.

When Can You Claim Leave Travel Allowance?

Leave Travel Allowance is not a usual component of the salary structure. Hence, before claiming Leave Travel Allowance, individuals must check the pay structure.

The Leave Travel Allowance provided by employers may vary from one to another. Eligible individuals can claim LTA by submitting required documents to employers.

All companies announce a particular claiming date for Leave Travel Allowance where individuals have to fill up a form, attach essential documents and send it to the Accounts or Human Resource Team.

Remember, employees need to claim for Leave Travel Allowance before employers start calculating tax liability.

Wondering what the proofs are essential for LTA? Read along!

Documents Required to Claim LTA

To claim Leave Travel Allowance, individuals have to submit proof of travel such as:

  • Flight tickets
  •  Boarding pass
  •  Bills from travel agent
  • Other documents demanded by an employer or evaluating officer. 

How to Calculate Leave Travel Allowance?

Computing Leave Travel Allowance is simple. The LTA is exempted to a certain limit while assessing income from salaries. The remaining amount is taxable according to the Income tax slab.

Let’s take a brief example to understand.

Suppose mr. ashok received an lta of ₹4,500. he is eligible to claim around ₹3,500 as an exemption against that amount as he spent that in travel. so, the calculation is as follows:, things to know before calculating leave travel allowance.

One can easily calculate Leave Travel Allowance. However, they must know certain things before doing it.

As stated earlier, employees can claim LTA for two travels in a block of 4 years. There is a difference between financial years and block years, and the Income Tax Department decides the latter.

The current block year is between 1st January 2022 and 31st December 2024. Here, employees can claim for two journeys that happened between 2022 and 2024.

However, if employees have not placed any claims during these block years, but claimed in the next block, they can move the allowance in the first year of the next block but not in the following next block. 

Remember, only travel costs are permissible for LTA, not food or other costs.

Which Expenses Are Exempted under Leave Travel Allowance?

The Income Tax Section 10(5) and Rule 2B covers tax exemption and other details related to tax exemption.

Below is a list of expenses that are allowed as exemption under LTA:

  • Travel by Air- The airfare of economy class by the shortest route or the actual expense incurred by an employee (whichever is lesser) is available for tax exemption. 
  • Travel by Rail- The rail fare of AC 1st class by the shortest route or the actual expense by an employee (whichever is lesser) is available for tax exemption. 

Besides, there are other situations that are covered under the exemption  list of Leave Travel Allowance . These are as follows:

  • In case the place of origin and destination are not linked by rail, but the journey is continued by other modes of transport.
  • In case the place of origin and destination are not linked by rail (partly or fully) and not connected by other known Public Transport systems (PTs).
  • In case the place of origin and destination are not linked by rail (partly or fully) but are connected by other known PTs.

In an earlier section, we have focused on a list of LTA exemptions. Now, let’s check some of its particulars, i.e. applicable deductions. Read along!

What Are the Deductions Available for Leave Travel Allowance?

On the basis of salary structure, employees can claim a certain exemption limit in LTA. The following conditions come under LTA exemption:

  • While travelling by air, employees can claim an exemption for ticket costs only of a national airline’s economy class.
  • When travelling by train, employees can claim an exemption for AC 1st class tickets.
  • While travelling by other modes of transportation (except air or railway), employees can claim exemption. Here, exemptions are available for the charges that are the same as first-class, AC 1st class or deluxe and for the lesser amount among the given options.    
  • The LTA deductions are applicable only for the journey of the shortest tour i.e. place of and return. Here, if a salaried employee receives ₹ 30,000, he/she can claim for only ₹ 20,000. The remaining ₹ 10,000 will be considered income and will be taxed as per the applicable tax slab rates.

What Are the Restrictions on Leave Travel Allowance?

Following is a list of conditions under which tax exemption is not available while availing Leave Travel Allowance.

  • LTA is not available on food expenses incurred while travelling .
  • International travel is not permissible for exemption.
  • Exemption under LTA is not offered to salaried employees who have more than two children and who are  born after October 1, 1998.
  • Salaried individuals cannot claim to Leave Travel Allowance more than two times in a block of 4 years.

Note: If salaried individuals have not claimed Leave Travel Allowance in a specific block year, they can carry it forward to the next block and use it in the first year of the next block itself.

Read the above-mentioned details carefully and understand Leave Travel Allowance to enjoy the benefits offered under it. But remember, this allowance is not applicable for employees who wish to follow the new tax regime.

Frequently Asked Questions

What is the eligibility to claim leave travel allowance.

To avail Leave Travel Allowance, employees have to take leave and travel within the country where it has to be a round-trip.

Is Leave Travel Allowance part of Income Tax Filing?

Leave Travel Allowance is not part of Income Tax Filing. Employers certify employees LTA claims and add them to Form 16.

Please try one more time!

Other Important articles

Standard Deduction on Salary

What Is Gratuity in Salary?

What is Gratuity Act?

7th Pay Commission

What Are the 7th Pay Commission Leave Rules in India?

  • What is Basic Salary

What is Gross Salary

What is Discretionary Bonus

Difference Between Gross Salary and Net Salary

What is Double Taxation Avoidance Agreement (DTAA)?

City Compensatory Allowance

Dearness Allowance

Per Diem Allowance

Travel Allowance

  • Leave Travel Allowance

Difference Between Real Income and Nominal Income

What is Net Salary

What is Medical Allowance in Salary?

What is Variable Pay?

What is Real Income?

Important Articles related to Finance

Employee Provident Fund

EPF Registration Process

How to Withdraw EPF Online

  • Atal Pension Yojana Calculator

How to Change Details in Atal Pension Yojana Scheme

How to get Atal Pension Yojana Statement

How to Close Atal Pension Yojana Account

Sukanya Samriddhi Yojana

How to Open Sukanya Samriddhi Yojana Account

  • Sukanya Samriddhi Yojana Calculator

What is Public Provident Fund?

How to Open PPF Account?

How to Check PPF Account Balance?

Eligibility Criteria to Open PPF Account

Types of PPF Forms

How to Withdraw PPF Online?

How to Invest in PPF?

  • Financial Planning for Salaried Employees

Importance of Financial Planning

Financial Planning Tips for Women

How to Apply for Atal Pension Yojana?

What is UAN Number?

How to check EPF Balance

KVP Calculator

Voluntary Provident Fund

Difference between EPF and EPS

How to Check Sukanya Samriddhi Account Balance?

Investment Planning Guides

Professional Tax in India

Disclaimer: This information is added only for informative purposes and collected from different sources across the Internet. Digit Insurance is not promoting or recommending anything here. Please verify the information before making any decisions.

  • Digit Insurance
  • Salary Structure & Other Information

Last updated: 2024-03-14

Get our app

App Store

  • Motor Insurance
  • Bus Insurance
  • Tractor Insurance
  • Commercial Van Insurance
  • Passenger Carrying Vehicle Insurance
  • Heavy Vehicle Insurance
  • Goods Carrying Vehicle Insurance
  • Commercial Vehicle Third Party Insurance
  • E-Rickshaw Insurance
  • Electric Car Insurance
  • Pay As You Drive
  • Electric Bike Insurance
  • Types of Motor Insurance
  • Comprehensive vs Zero Depreciation
  • Comprehensive Health Insurance
  • Wellness Benefits
  • Diabetes Health Insurance
  • Family Floater VS Individual Health Insurance
  • Health Insurance for Parents
  • Health Insurance Plans for Family
  • How to Lower Your Health Insurance Premium
  • Indemnity Health Insurance
  • Individual Health Insurance
  • Health Insurance Premium Calculator
  • Health Insurance Tax Benefits
  • Health Insurance for Senior Citizen
  • Health Insurance in Bangalore
  • Corona Health Insurance
  • Health Insurance covering Critical Illness
  • Family Floater Health Insurance
  • Third Party Bike Insurance
  • Comprehensive Bike Insurance
  • Zero Depreciation Bike Insurance
  • NCB in Two Wheeler Insurance
  • IDV Value Calculator for Bike
  • Cashless Bike Insurance
  • Add-on Cover in Bike Insurance
  • Bike Insurance Calculator
  • Own Damage Bike Insurance
  • Comprehensive vs Third Party Bike Insurance
  • Compare Bike Insurance
  • Royal Enfield Classic Insurance
  • Best Scooty in India
  • How to Transport a Bike by Train
  • Difference between Torque & BHP in Bikes
  • Car Insurance Calculator
  • Third Party Car Insurance
  • Comprehensive Car Insurance
  • Zero Depreciation Car Insurance
  • NCB in Car Insurance
  • IDV Calculator for Car
  • Bumper to Bumper Car Insurance
  • Own Damage Car Insurance
  • Comprehensive vs Third Party Insurance
  • Compare Car Insurance
  • Find Vehicle Registration Details Online
  • CNG Car Insurance
  • Own Damage Insurance
  • Popular Car Insurance
  • Car Segment Guide
  • What is RPM in Cars
  • Property Insurance
  • Fire Insurance
  • Burglary Insurance
  • Building Insurance
  • Office Insurance
  • Bharat Griha Raksha Policy
  • Bharat Laghu Udyam Suraksha Policy
  • Bharat Sookshma Udyam Suraksha Policy
  • Home Insurance for Home Loan
  • Pet Insurance
  • Mobile Insurance
  • Home Insurance Premium Calculator
  • Top Low-Investment Franchise Businesses in India
  • Assessing Officer of Income Tax Department
  • Identity Theft & Frauds
  • What is Financial Planning
  • Management Liability Insurance
  • General Liability Insurance
  • Fidelity Insurance
  • Professional Liability Insurance
  • Workmen Compensation Insurance
  • Money Insurance Policy
  • Sign Board Insurance
  • Plate Glass Insurance
  • Erection All Risk Insurance
  • Contractors' All Risks Insurance
  • Directors' and Officers' Liability Insurance
  • Marine Cargo Insurance
  • Contractors' Plant and Machinery Insurance
  • What is Micro-enterprise
  • Difference Between Trademark and Patent
  • Different Types of Industries
  • Machinery Breakdown Insurance
  • Non-Creamy Layer Certificate
  • Income Tax Calculator
  • HRA Exemption Calculator
  • BMI Calculator
  • Bike Loan EMI Calculator
  • EPF Calculator
  • Personal Loan EMI Calculator
  • ULIP Calculator
  • Vehicle Road Tax Calculator
  • Online GST Calculator
  • SIP Calculator
  • 80D Deduction Calculator
  • Human Life Value Calculator
  • Ovulation Calculator
  • Invoice Generator
  • PDF to JPEG Converter
  • Rent Receipt Generator
  • What is Credit Score
  • What is Public Provident Fund
  • What is Sukanya Samriddhi Yojana
  • Property Tax Guides
  • Road Tax Guides
  • How to Apply for Reissue of Passport
  • Income Tax Slabs in India
  • What is Atal Pension Yojana Scheme
  • Everything about EPF
  • Financial Planning for Women
  • Everything about NPS
  • ULIP vs Mutual Funds
  • What is Professional Tax
  • Everything about Annuity
  • What is UPI Reference Number
  • QR Code Guides
  • Investment Guides
  • Aadhaar Card Guides
  • Is KYC Mandatory for Buying Insurance
  • Everything about GST
  • GST Registration in India
  • Types of Insurance
  • Types of General Insurance
  • Government Holidays in India
  • Indian Passport Rank
  • Visa Free Countries for Indians
  • Visa on Arrival for Indians
  • PAN Card Guides
  • Business Insurance Guides
  • Best Business Ideas
  • What is Custom Duty
  • What is Debenture
  • What is Nominal Account
  • How to Drive a Car
  • PUC Certificate
  • Vehicle Registration Certificate
  • New Traffic Fines
  • Fine for Driving without Helmet
  • Types of Driving Licence in India
  • Driving Licence in Delhi
  • Driving Licence in Bangalore
  • Driving Licence in Jaipur
  • Bangalore Traffic Fines
  • Pune RTO Fine
  • RTO Ahmedabad
  • RTO Bangalore
  • RTO Lucknow
  • RTO Chennai
  • Reasons for Visa Rejection
  • Check UK Visa Application Status
  • Schengen Travel Insurance
  • Thailand Travel Insurance
  • USA Travel Insurance
  • Dubai Travel Insurance
  • What Is Bangkok Famous For?
  • Best Countries to Visit in August
  • Best Beaches in the Maldives
  • How to Get PR in Australia
  • Countries with Easy Work Visa Process
  • Foriegn Embassies in India
  • Indian Embassies in Foriegn Countries
  • Travel Insurance covering Adventure Activities
  • Lost Your Passport When Travelling
  • Apply for Schengen Visa from India
  • Minimise the Cost of Travel Insurance
  • How to Get International Driving License
  • India Travel Guides
  • Student Travel Insurance
  • Family Travel Insurance
  • Digit Insurance Reviews
  • Car Insurance Reviews
  • Bike Insurance Reviews
  • Commercial Vehicle Insurance Reviews
  • Travel Insurance Reviews
  • Health Insurance Reviews
  • Mobile Insurance Reviews
  • General Insurance Agent
  • Health Insurance Agent
  • Motor Insurance Agent
  • Everything about DigiLocker
  • Bank Branch Locator
  • IFSC Code Finder
  • Excise Duty on Fuel in India
  • Which Fuel is Used in Aeroplane
  • Deductions & Exemptions Under the New Tax Regime
  • Cooling System in Automobiles
  • Importance of Motorcycle Helmets

CIN: U66010PN2016PLC167410, IRDAI Reg. No. 158.

Go Digit General Insurance Limited (formerly known as Oben General Insurance Ltd.) - Registered Office Address - 1 to 6 floors, Ananta One (AR One), Pride Hotel Lane, Narveer Tanaji Wadi, City Survey No.1579, Shivaji Nagar, Pune-411005, Maharashtra | Corporate Office Address - Atlantis, 95, 4th B Cross Road, Koramangala Industrial Layout, 5th Block, Bengaluru-560095, Karnataka | Trade logo of Go Digit General Insurance Ltd. displayed above belongs to Go Digit lnfoworks Services Private Limited and is provided and used by Go Digit General Insurance Ltd. under license.

LTA (Leave Travel Allowance): Meaning, Rules, Tax Exemptions and Conditions to claim

author portrait

Hiral Vakil

Travelling offers a wide range of benefits. Taking time away from daily routine can reduce stress and improve mental and emotional well-being. However, vacations can be expensive. Income Tax provides various exemptions on such expenses to salaried individuals. One such exemption available is LTA i.e. Leave Travel Allowance. LTA is an allowance employers give to their staff for vacations in India.

LTA: Meaning

Conditions to claim lta exemption, leave travel exemption: eligibility, how to claim exemption on leave travel allowance.

Leave Travel Allowance is an allowance employers give to their employees as a part of CTC for travelling alone or with family to any place in India : 

  • either on leave or
  • after retirement from service or
  • after termination of service.

Income tax has laid down rules for claiming exemption of LTA.

leave travel allowance calculation in salary

Section 10(5) of the Income Tax Act along with Rule 2B has prescribed the conditions and limit of exempt leave travel allowance.

  • Leave travel allowance should be a part of the employee’s salary structure.
  • An exemption is available for actual expenses incurred by the employee including their family for domestic travel only.
  • Spouse and children
  • Parents, brothers, and sisters who are wholly or mostly dependent on the employee.
  • Further, this exemption can be claimed for a maximum of two children born after 01/10/1998. For children born prior to this date, there is no restriction.
  • It covers only the cost of travel for the trip (travel by rail, air or any other public transport). It does not cover the cost of hotel accommodation, food, etc.
  • An exemption is available only for two trips in a block of four calendar years . The current block for leave travel is from 2022 to 2025.
  • If an exemption is not availed during the block period, it can be carried over to the next block and used in the first year of the next block.

leave travel allowance calculation in salary

Let’s understand with an example:

Let’s say, an employee does not avail Leave Travel allowance for the block of 2018-2021. He is allowed to carry forward a maximum of one unavailed LTA to be used in the succeeding block of 2022-2025. Accordingly, if he avails LTA in April 2022, the same will be considered for the block of 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 2022-2025.

The LTA exemption is available only on the actual travel costs. Expenses such as sightseeing, hotel accommodation, food, etc are not eligible for this exemption. It is also limited to the LTA provided by the employer. For example: If the actual expense incurred is INR 50,000 but LTA as part of Salary is INR 35,000 then the maximum exemption available would be INR 35,000 only.

Exemption when various modes of transport are used for travel

Employees can claim Leave Travel Allowance exemption by submitting details in Form 12BB . They should submit the proof in support of their claim. Further employees can submit boarding passes, air tickets, train tickets, invoices from travel agents, etc, as documentary proof to their employers.

leave travel allowance calculation in salary

No, LTA can be claimed only for domestic travel. You can only claim LTA if the Employer provides it as part of your salary.

If an employee travels to different locations on a single vacation then the exemption available will be for the travel cost eligible from the place of origin to the farthest location by the shortest route possible.

It depends on the organisation’s policies as many companies allow LTA exemption only if employees take specific leave for vacation and not on official holidays or weekends.

No, You can claim LTA exemption only twice in a block of 4 calendar years. The current block of four years is 2022-2025.

Employees are advised to maintain proof such as flight tickets, invoices from travel agents, passes, etc. as they have to be submitted to the employer.

Employees can know the exempt Leave Travel Allowance amount from Form 16 issued by the employer at the end of the financial year. It is exempt u/s 10(5) of the Income Tax Act.

Since Leave Travel Allowance is a part of salary income, an employee can file ITR-1 while claiming exempt LTA. However, salaried need to file ITR-2 if their income is more than Rs. 50,00,000.

Got Questions? Ask Away!

Hey @sushil_verma

There are a wide range of deductions that you can claim. Apart from Section 80C tax deductions, you could claim deductions up to INR 25,000 (INR 50,000 for Senior Citizens ) buying Mediclaim u/s 80D. You can claim a deduction of INR 50,000 on home loan interest under Section 80EE.

Hey @Dia_malhotra , there are many deductions that you can avail of. Your salary package may include different allowances like House Rent Allowance (HRA) , conveyance , transport allowance, medical reimbursement , etc. Additionally, some of these allowances are exempt up to a certain limit under section 10 of the Income Tax Act.

  • Medical allowance is exempt up to INR 15,000 on a reimbursement basis.
  • Children education allowance is exempt up to Rs. 200 per child per month up to a maximum of two children.
  • Conveyance allowance is exempt up to a maximum of Rs. 1600 per month.

Tax on employment and entertainment allowance will also be allowed as a deduction from the salary income. Employment tax is deducted from your salary by your employer and then it is deposited to the state government.

The benefit Section 80EEB can be claimed by individuals only. An individual taxpayer can claim interest on loan of an electric vehicle of up to INR 1.5 lacs u/s 80EEB. However, if the electric vehicle is used for the purpose of business, the vehicle should be reported as an asset, loan should be reported as a liability and the interest on loan can be claimed as a business expense irrespective of the amount. (We have updated the article with the changes).

Thus, if you have a proprietorship business, you should claim interest amount as a business expense only if the vehicle is used for business purpose. However, if it is used for personal purpose, you can claim deduction of interest u/s 80EEB in your ITR since you would be reporting both personal and business income in the ITR (under your PAN).

As per the Income Tax Act, the deduction under Section 80EEB is applicable from 1st April 2020 i.e. FY 2020-21.

:slight_smile:

No issues. You’re welcome!

Hey @shindeonkar95

In case of capital gain income (LTCG/STCG), transfer expenses are allowed as deduction, except STT.

However, in case of business income (F&O, intraday), all expenses incurred for the business (including STT) are eligible to claim deduction in ITR.

Hope, it helps!

Is it possible to claim deductions under S. 80CCF for Infra bonds bought in the secondary market and held to maturity?

There were a number of 10 year infra bonds issued in the 2010- 2013 period, which will start maturing soon. These are all listed on the exchanges (although hardly any liquidity or transactions in them). If I were to buy some of these bonds in the open markets and hold them in my demat to maturity (<3 years), is it possible to claim tax deductions (upto 20k per year) under 80CCF for buying?

I couldn’t find anything on this. Any help is appreciated.

Hello @Veejayy ,

Yes you can claim deduction under 80CCF for investment made in specified infrastructure and other tax saving bonds bought in the secondary market and held to maturity.

Deduction under Section 80CCF can be availed only through investment in certain tax saving bonds, issued by banks or corporations after gaining permission from the government which shall be restricted upto 10,000 per year.

These bonds are generally long term bonds, having tenure of more than 5 years with a lock in period of 5 years in most of the cases. These bonds can be sold after the lock in period!

Also, interest earned on these bonds will be taxable.

Hope this helps!

Hi, I need to file my income tax for FY21, I am using Quicko platform for filing, I wanted to confirm if the ELSS investment amount for the FY21 is to be added in the section 80C, since I already the amount of Rs30,072 , should I add my ELSS amount to this existing amount and submit the total

Hey @Sheirsh_Saxena , yes, the investment amount needs to be added under 80C.

Continue the conversation on TaxQ&A

87 more replies

Participants

Avatar for Divya_Singhvi

Last Updated on 5 months by Shreya Sharma

fincart

  • How to Claim Your Leave Travel Allowance?
  • Post author: fincart
  • Post published: October 20, 2023
  • Post category: Income Tax

Table of Contents

We all like traveling these days, don’t we? Every year we all plan to make at least one trip. But little do we know that we could claim one of the allowances if provided by your employer. It could also help you to save taxes too!  But how do you claim it? Can you claim it every year? How much amount does it cover? What is included in this? Is there an eligibility criterion to claim this allowance?

Tax deductions and exemptions provided by the Income Tax department have allowed us to save the most amount of tax possible. By using these exemptions, employers can structure employee Cost to Company (CTC) in a tax-efficient manner. Leave Travel Allowance (LTA) is an exemption available to salaried workers under the law that is also widely used by employers.  

When planning travel to claim an LTA exemption, many factors need to be considered. LTA exemptions are governed by income tax provisions: 

What is Leave Travel Allowance (LTA)?

Leave Travel Allowance (LTA) is an allowance provided by employers to employees who are on leave from work to cover their travel expenses. By the Income Tax Act, of 1; 961, LTAs are an important component of an employee’s salary, as they are eligible for income tax exemptions, making them a valuable tool for tax saving . LTA received by the employee during the year will not be included in his net income under Section 10(5) of the Income Tax Act.

Example of LTA

Assume that LTA granted by your employer is Rs 30,000, and the actual travel cost 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.

Take another example, suppose the Leave Travel Allowance provided by the employer is Rs 25,000. The actual expenses spent on travel are Rs 30,000. Here, the LTA exemption allowed would be Rs 25,000 irrespective of a higher amount spent on travel.

Benefits of Leave Travel Allowance

Tax Exemption : LTA provides tax benefits as the amount spent on eligible travel expenses is exempt from income tax.

Family Inclusion : The allowance covers immediate family members, promoting family travel and bonding.

Domestic Exploration : Encourages employees to explore different parts of India, contributing to tourism and cultural exchange.

Reimbursement : Allows reimbursement of actual travel expenses or up to specified limits, easing financial burden on employees.

Employee Well-being : Promotes work-life balance by facilitating quality time with family during approved leave periods.

Conditions to claim Leave Travel Allowance exemption

The following conditions must be satisfied for claiming an LTA exemption:

  • You can claim LTA for travel costs incurred for yourself and your family.
  • LTA can be claimed for any two years in a block of 4 years. The current block year for claiming LTA is 2022 to 2025.
  • Actual journey is a must to claim the exemption.
  • The exemption is available only on the actual travel costs i.e., the air, rail or bus fare incurred by the employee. Local conveyance, sightseeing, hotel accommodation, food, etc., are not eligible.
  • The exemption is also limited to LTA provided by the employer.
  • It applies to travel only within the country.

What is the eligibility of LTA exemption?

The LTA (Leave Travel Allowance) exemption for tax purposes is based on the actual travel cost. It covers expenses for a journey from the employee’s origin to the destination and back, using the shortest route by air, rail, or bus. Only the cost of travel tickets is eligible for exemption. Other expenses like conveyance, sightseeing, accommodation, shopping, and food are not allowed. If the employer’s LTA allowance is less than the actual travel cost, the exemption is limited to the employer’s provided amount.

Documents required for claiming LTA

To claim LTA, fill out the LTA application form supplied by your employer, including essential details like travel date, destination, mode of transport, and incurred costs. Alongside the application, submit supporting documents such as tickets, boarding passes, and invoices as evidence for your LTA claim. These documents are crucial to validate your travel expenses and support your application.

LTA Exemption Rules for Various Modes of Transport

The LTA claim depends on the mode of transport.

  • If travel is by air, the LTA limit is Actual Expenses or Economy class air fare of the national carrier by the shortest route to the place of destination, whichever is lower.
  • If travel is by rail, the LTA limit is Actual Expenses or first-class AC rail fare by the shortest route to the place of destination, whichever is lower.
  • If travel is by a recognized public transport system, the LTA limit is Actual Expenses or 1st class/ deluxe class fare by the shortest route to the place of destination, whichever is lower.
  • If no recognized public transport system is available, the LTA limit is Actual Expenses or first-class rail fare by the shortest route to the place of destination, whichever is lower. (It is assumed as if the journey had been performed by rail.)

How Much Leave Travel Allowance Exemption Will You Get?

There is a limit on how much LTA an employer may provide as an exemption. For instance, if Rs. 30,000 of LTA is granted by your employer and the actual travel cost incurred is Rs. 20,000 by an employee then the exemption will only be available till Rs. 20,000. Therefore the balance of Rs. 10,000 will be included in the taxable salary income.  Procedure to Claim LTA

LTA claims are generally handled by employers. Employers announce the deadline for employees to claim LTA and may require employees to submit proof of travel along with the mandatory declaration, such as tickets, boarding passes, invoices from travel agents, etc. Although employers don’t need to collect proof of travel, it is always advisable for employees to keep copies for their records as well as to submit them to their employer on demand based on the LTA policy of the company.

What Happens to LTA If There is No Traveling Involved?

Because the LTA is part of your salary structure, it is automatically credited to your account regularly. If you do not travel or do not have valid proof of travel, you cannot claim the LTA received for tax exemption purposes. Your net taxable income will be increased if you receive an LTA.

What expenses can be included under LTA?

Under the Income Tax Act, LTA (Leave Travel Allowance) can include the following expenses:

Travel Expenses : LTA encompasses the travel costs for the employee and their immediate family members (spouse, children, and dependent parents or siblings). The travel can be by air, rail, or public transportation, following the employer’s or Income Tax Department’s specified rules.

Destination : LTA is applicable for travel within India. Employees can claim expenses incurred on traveling to any location in India during their leave period.

Mode of Travel : LTA covers expenses for travel by air, train, or other public transportation. Reimbursement is based on the actual amount spent or as per limits set by the employer or tax authorities.

Leave Period : LTA can be claimed for travel during the employee’s leave period, including annual leave, casual leave, or any other approved form of leave.

Unclaimed LTA

Unclaimed LTA is allowed to be carried forward. If an employee has not availed LTA exemption once or twice in a block of 4 years, he is allowed to carryover one exemption to the next block provided he avails this benefit, in the first calendar year of immediately succeeding block.

For example, during the 4-year block of 2014-2017, if you did not claim LTA or claimed it only once, then you will be allowed to carry forward one LTA to 2018 (first year of next block, i.e. 2018-21). Thus, from 2018 to 2021, you will be able to claim LTA three times.

Can Unclaimed LTA be Carried Over to the Next Block Year?

Under the carry-over concession rules, under which the employee can claim LTA tax breaks on three journeys made in the current block of years if he hasn’t claimed LTA in the last running block or has just claimed it once, the employee can still claim one additional LTA in the next block of calendar years. To utilize the carryover concession facility, one LTA exemption for the journey must be claimed during the first calendar year of the next block.

For instance, in the last block of the year, between 2018-2021, you made only one tax exemption claim under LTA as an employee. Therefore, you become eligible for LTA claims for up to 3 journeys in the current block, between 2022 and 2025. However, your first claim must be filed in the first calendar year of the current block, i.e. in 2022.

Also Read: Smart Tax Planning Strategies for High Earners

Leave travel allowance is an amount provided by the employer to the employee for Travelling while on Leave. This is a part of your salary which is exempted from tax.

Employees in India are generally eligible for LTA. To claim LTA, employees must undertake travel during their leave period, and the exemption is subject to specified conditions and limits set by the income tax regulations.

Under LTA, expenses related to travel within India are covered. This includes the cost of transportation by air, rail, or bus for the employee and eligible family members.

LTA can be claimed for two journeys in a block of four years and not on every financial year.

The concept of “block years” in the context of LTA (Leave Travel Allowance) refers to a four-year block set by the income tax authorities. This block consists of four consecutive calendar years, during which an employee is allowed to claim LTA for up to two trips.

No, LTA (Leave Travel Allowance) is specifically applicable for domestic travel within India.

For LTA exemption, the costs incurred for family members traveling with the employee are allowed. Family members include spouses, children, dependent parents, and dependent siblings.

The exemption can be claimed for up to two children if born on or after 1st October 1998.

LTA exemption is calculated as the least of the actual travel expenses incurred on a trip within India or the fare of the equivalent journey by the shortest route in the chosen mode of transportation (air, rail, or bus). Again, it is limited to the LTA component in your compensation package or CTC.

If an employee doesn’t travel at all or lacks valid proof of travel, they cannot claim LTA for tax exemption purposes. In such a scenario, the received LTA amount is treated as a part of the employee’s taxable income.

If an employee does not fully utilize their LTA entitlement in a particular block of four years, it can be carried over to the next block. But the employee is usually required to utilize this carryover LTA in the first calendar year of the immediately succeeding block.

If the unutilized LTA is not claimed within the first year of the next block, it will expire and would not be allowed to be claimed later on.

Yes, there is a specific deadline for employees to claim LTA. Usually, LTA can be claimed for exemption twice under the block of 4 years.

No, LTA (Leave Travel Allowance) is specifically designed for personal travel during leave periods and cannot be claimed for business trips or official travel.

You Might Also Like

Read more about the article Tax Planning Strategies for New Businesses

Tax Planning Strategies for New Businesses

Read more about the article Smart Tax Planning Strategies for High Earners

Smart Tax Planning Strategies for High Earners

Read more about the article Are You Making These Mistakes While Filing Income Tax Return?

Are You Making These Mistakes While Filing Income Tax Return?

img

Thank you for signing up!

Leave Travel Allowance Exemption: A Comprehensive Guide

What is leave travel allowance, conditions to claim lta exemption, eligibility for lta exemption, quantum of lta exemption, lta exemption rules for various modes of transport, unclaimed lta, lta exemption in case of job change, lta for multi-destination travel, lta for vacations on holidays, expenses included under lta, procedure to claim lta, frequently asked questions.

Leave Travel Allowance (LTA) is a popular tax benefit provided by employers to their employees in India. It allows employees to save taxes on travel expenses incurred during their vacations within the country. In this comprehensive guide, we will delve deeper into the concept of LTA, how it works, and the rules and regulations surrounding it. Whether you're an employee looking to understand the benefits of LTA or an employer seeking to implement it, this guide will provide you with all the information you need. So, let's begin!

Leave Travel Allowance (LTA) is a tax-free allowance provided by employers as part of their employees' salary component. It allows employees to claim tax exemption on the costs incurred for leisure travel within India. Under LTA, employees are permitted to take a leave from work and travel on vacation, with the costs incurred considered as a tax-free expense. The exemption is allowed twice in a block of four years, subject to certain conditions.

To avail of the LTA tax benefit, employees must submit the bills and travel documents to their employer as proof of travel expenses. The exemption is allowed only for the expenses incurred during the travel period and is subject to specific conditions.

To claim an exemption for LTA, employees must fulfill the following conditions:

  • The employee must actually travel to be eligible for LTA. Claiming LTA without actually traveling is not permitted.
  • The vacation should be taken only within India.
  • Costs incurred for family members who travel with the employee would also be allowed as an exemption. The family members include spouses, children, dependent parents, and dependent siblings.
  • LTA components must be included in the salary structure of the employee.
  • The exemption can be claimed for up to two children born on or after 1st October 1998. There is no restriction for children born before this date or in cases of multiple births on a second occasion after having one child.
  • LTA exemption is allowed for up to two journeys taken within a block of four calendar years. The current block year for claiming LTA started in 2022 and will end in 2025. Unused LTA entitlement for the current block year is forfeited if not claimed, and the employee will need to wait for the next block year to claim LTA again.
  • LTA can be claimed for travel by any mode of transport, including air, train, or road.
  • No LTA is allowed for hotel accommodation and food.

The eligibility for LTA exemption depends on the actual cost incurred on travel. Employees can claim LTA exemption for the expense incurred on booking a journey from their place of origin to the place of travel and back. The journey should be undertaken through the shortest possible route by air, rail, or bus. Only the cost of tickets booked for travel is allowed as an exemption. Costs incurred on conveyance, sightseeing, accommodation, shopping, and food are not allowed. If the employer offers a lower LTA allowance than the actual travel cost, the exemption is limited to the LTA allowed by the employer.

For example, if the employer allows an LTA of INR 25,000 and the employee incurs travel costs of INR 35,000, the LTA exemption can be claimed only for INR 25,000. Conversely, if the employee incurs a cost of INR 20,000, the exemption allowed would be INR 20,000.

The quantum of LTA exemption depends on the actual cost incurred on travel. The LTA exemption is allowed for the expense incurred on booking a journey from the employee's place of origin to the place of travel and back, through the shortest possible route via air, rail, or bus. Only the cost of tickets booked for travel is allowed as an exemption. Costs incurred on conveyance, sightseeing, accommodation, shopping, and food are not allowed.

The actual travel costs incurred for LTA exemption depend on the mode of transport. The rules for determining the exempted travel costs for various modes of transport are as follows:

  • When the destination is not connected directly by a recognized public transport, the exempted travel costs are considered to be the fare of AC first-class rail tickets from the origin city to the destination city, assuming the journey is made by rail and the shortest route is taken.
  • If the destination is connected by all recognized public transport other than trains, the exempted cost would be the fare of first class or deluxe class on such transport for the journey taken using the shortest route.
  • If the destination is connected by trains, the exempted cost would be the fare of an AC first-class train ticket for the shortest route, whether the journey has been taken by train or not.
  • If the employee travels by air, the exempted cost would be the fare for economy class of a national carrier using the shortest route.

LTA exemption is available for two journeys undertaken in a block of four years. However, if an employee does not take two journeys within the four-year block, only one unutilized LTA can be carried forward to the next block of years and claimed therein. To claim the unutilized LTA, the employee must take a trip in the first calendar year of the next block. If the unutilized LTA is not claimed within the first year of the next block, it will expire and cannot be claimed later on.

Even if an employee changes their job within a block of four years, LTA exemption is still available. If the change happens within the block and there is any unutilized LTA, it can be claimed with the new employer. However, if the LTA has been availed from the old employer, the new employer will not allow any new LTC.

If an employee goes on vacation and visits multiple cities, the exempted LTA amount 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 reimburse the employee for the most expensive leg of their travel.

For example, if an employee resides in Delhi and decides to go on vacation to Mumbai, Kolkata, and Chennai, the cost of round-trip travel from Delhi to Mumbai is ₹5000, from Delhi to Kolkata is ₹4000, and from Delhi to Chennai is ₹6000. In this scenario, the exempted LTA amount would be ₹6000, 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.

Under the Income Tax Act, LTA is allowed only when the employee takes a leave from work and then travels on vacation. If the traveling is done on holidays, the same is not allowed for LTA exemption. However, organizational practices might differ, and some companies may allow LTA exemption even if the trip is taken on a holiday, while others may not.

Under the Indian Income Tax Act, the following expenses can be included under LTA:

  • Travel expenses: LTA covers the cost of travel for the employee and their immediate family members, including spouse, children, and dependent parents or siblings. The travel can be undertaken by air, rail, or public transportation as per the specific rules defined by the employer or the Income Tax Department.
  • Destination: LTA is meant for travel within India. Employees can claim expenses incurred on traveling to any place in India for their leave period.
  • Mode of travel: LTA covers expenses incurred on travel by air, train, or other public transportation. The expenses are eligible for reimbursement based on the actual amount spent or as per the limits set by the employer or tax authorities.
  • Leave period: LTA can be claimed for travel during the employee's leave period, which may include annual leave, casual leave, or any other form of approved leave.

The procedure to claim LTA may vary depending on the employer's policies and procedures, but here are the general steps that most employees need to follow:

  • Check your eligibility: Ensure that you are eligible for LTA and have completed the required years of service with your employer. Check the LTA rules and regulations specific to your employer.
  • Plan your travel: Plan your travel in advance and select the mode of transport you wish to use. Keep all the relevant documents related to your travel, such as tickets, boarding passes, and invoices.
  • Apply for LTA: Fill out the LTA application form provided by your employer and provide all the relevant details of your travel, such as the date of travel, destination, mode of transport, and cost incurred.
  • Submit proof of travel: Along with your application form, submit all the relevant documents such as tickets, boarding passes, and invoices that prove your travel. These documents serve as proof of your LTA claim.
  • Await approval and reimbursement: Your employer will verify your LTA claim and, once approved, reimburse the amount claimed as per their policy. The reimbursement may be processed as part of your regular salary or as a separate payment.

Q: If the employee takes one journey in the block of 2022-23, by when should the unclaimed LTC be claimed in the next block?

A: The unclaimed LTC exemption should be claimed within the year 2025 if it is carried forward to the next block.

Q: Is LTA exemption available in the new tax regime applicable from the financial year 2022-23?

A: No, LTA exemption would not be allowed under the new tax regime, which is applicable from the financial year 2022-23.

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

A: No, LTA exemption cannot be claimed for travel costs of parents-in-law.

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

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

Q: If the boarding pass is lost, can LTA be claimed?

A: LTA can be claimed if the boarding pass is lost. However, allowing LTA exemption would depend on the employer and the availability of other proofs.

Q: If the employee's wife travels with him, would her travel costs be allowed as an exemption?

A: Yes, the travel costs of spouses can be claimed under LTC exemption.

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

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

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

A: If the employee does not travel in a block of four years, LTA exemption would not be allowed. However, one unutilized LTA can be carried forward to the next block.

Q: Can return airfares on international trips be claimed under LTA?

A: No, international travel is not covered under LTA, and return fares on such travel would not be allowed as an exemption.

Q: Can I claim LTA exemption twice in one financial year?

A: No, only one LTC exemption can be claimed in one financial year. If you have taken two trips within the same financial year, the exemption would be allowed only on one trip.

Leave Travel Allowance (LTA) is a valuable tax benefit that allows employees in India to save taxes on travel expenses incurred during their vacations. By understanding the rules and regulations surrounding LTA, employees can make the most of this tax-saving measure. Employers, on the other hand, should ensure that LTA is properly implemented and administered to benefit their employees. With the comprehensive information provided in this guide, both employees and employers can navigate the world of LTA exemption with confidence.

author

The Tax Heaven

  • Capital Gains Tax

Recent Blog

img

Intimation u/s Section 143(1) - Password for ITR Notice

img

Deciding The Right ITR To File: Understanding Different ITR Forms For FY 2023-24 (AY 2024-25)

img

Income Tax Slab for Senior Citizens FY 2024-25

img

An In-depth Overview of the Highest Tax Paying State in India

img

The Limitations of Tax Planning – Navigating the Potential Pitfalls

What is leave travel allowance (lta).

Leave Travel Allowance (LTA) is an allowance provided by employers to employees to cover their travel expenses incurred during leave periods for vacation purposes.

How does the exemption for Leave Travel Allowance (LTA) work?

Under the Income Tax Act, employees can claim tax exemption on the amount received as Leave Travel Allowance (LTA) for travel expenses incurred for themselves and their family members, subject to certain conditions.

What are the conditions to claim LTA exemption?

To claim LTA exemption, the travel must be undertaken within India, the employee must be on leave, and the travel expenses must be incurred on transportation (air, rail, or bus fares) to the destination and back.

Can LTA exemption be claimed for international travel?

No, LTA exemption is only applicable for travel undertaken within India. Expenses incurred for international travel are not eligible for LTA exemption.

Is there a limit to the LTA exemption that can be claimed?

Yes, LTA exemption is limited to the actual travel expenses incurred by the employee for himself/herself and eligible family members on the journey. The exemption is subject to the rules and limits specified by the employer's policy and the Income Tax Act.

Subscribe to the exclusive updates!

The tax heaven:.

How To Calculate Travel Allowance For Tax Exemption

Home » B2B » How To Calculate Travel Allowance For Tax Exemption

An employee receives several types of allowances over and above their regular salary. Medical allowance, House Rent Allowance, and Leave Travel Allowance (LTA) are a few examples of such allowances. The allowances are part of the employee’s CTC. The employee can claim tax exemption for the income through these allowances. Leave Travel Allowance is a helpful tax-saving option for employees.

Corporate travel comprises essential and non-essential travel. Traveling to a holiday destination is a non-essential business trip. Many companies provide Leave Travel Allowance to help employees visit tourist destinations or hometowns. An employee may travel alone or with family to enjoy the benefits of LTA. Corporate travel managers can integrate the company’s LTA rules into the travel policy for effective implementation. Keep reading to know how to calculate travel allowance for tax exemption.

Understanding Leave Travel Allowance

understanding-leave-travel-allowance

The Leave Travel Allowance or Leave Travel Concession is the facility by the employer to enable employees on leave to travel from their place of work to any destination within the country. The name Leave Travel Allowance implies the employee should be on leave during the period of traveling to claim the allowance.

Employers use the quantum of LTA while structuring the annual package or the CTC. It enables the employee to avail of the tax benefits under relevant sections of the Income Tax Act. The corporate travel manager needs awareness of the mandatory requirements to help employees claim tax exemption.

The deductions for tax exemptions cover travel expenses for the round trip. These do not apply to other expenses like boarding, sightseeing, or shopping. One should ensure the traveling expenses do not exceed the Leave Travel Allowance. If the expenditure for traveling is less than the LTA amount, then the remaining amount becomes part of the employee’s taxable income.

Conditions for claiming LTA

travel-expense

Leave Travel Allowance has two obvious requirements: leave and travel. The employee must be on leave during the travel as the aim is to facilitate a break from the official work. Benefits of the Leave Travel Allowance may not be available to all employees in the organization.

The employer has the prerogative to provide the facility to employees by considering employee grades and pay scales. Confirming the pay structure is advisable to know whether the employee is eligible for the Leave Travel Concession. Travel managers should inform the date to claim LTA TO all eligible employees to help them plan travel and submit relevant documents to the finance department.

One can claim the economy fare of an LCC (Low-cost carrier) if traveling by air. LTA also applies to rail journeys. First class AC fare for the shortest route of train travel is permissible to avail tax exemption through LTA.

One may also claim tax exemption for travel by other modes like road transport. The expenses should be equivalent to or lesser than the first class AC fare of the train. Though travel expenses by all modes of travel are acceptable for tax benefits, the employee must produce valid journey tickets or receipts. A spouse, children, siblings, and dependent parents can accompany the employee for LTA travel. The tax exemption is only available for two children.

Factors to consider for LTA calculation

One must find out when to claim Leave Travel Assistance before knowing how to calculate Leave Travel Allowance in salary. Tax breaks for LTA travel expenses are available twice in the four years’ block to eligible employees. The system of block years began in 1986. The current block is 2022 -2025. The employee may claim the tax exemption in the next block if they cannot undertake travel with leave during the current block as the tax break carries forward to the next block. The employee who did not avail of tax exemption during the block of 2018-2021 is eligible to claim the same by availing of LTA in the current block. They are also eligible for claiming tax breaks for the current block of 2022-2025.

Let us understand how to calculate travel allowance to avail tax benefits. An employee can only claim tax-benefits for actual travel expenses by the shortest route. The employee qualifies to claim the entire LTA amount for tax benefit if the actual travel expenses are the same as the LTA amount.

One can claim the amount of Rs 5000/- by submitting documents to prove travel expenses if the LTA amount as per CTC is Rs 5000/-. Travel expenses of Rs 4000/- will add Rs 1000/- to the total taxable income as the employee can only claim tax benefits for Rs 4000/-. Employees opting for the new tax regime are not eligible to claim a tax break.

Suggested Read: Are Travel Expenses Tax Deductible Or Not?

Automated travel management solution

Corporate travel managers should use an automated platform for travel management to help employees get the best deals on travel and hotel bookings if they are going on vacation. It will help them get to travel and hotel bookings without hassles. The automated travel booking systems backed by advanced hybrid engine technology enable complex activities like travel booking and reporting.

Paxes blends super-efficient travel management with HRMS integration options to improve the corporate travel program. Travel managers can configure travel policies by incorporating LTA details of employees to help them avail of tax benefits.

Leave Travel Allowance is a crucial part of income that helps reduce employee tax liability. One should ensure to know the company policy about how to calculate travel allowance before making full use of the benefits and claim travel allowances for tax exemption.

How To Calculate Travel Allowance FAQs

What is the percentage of travel allowance.

Travel allowance depends on company to company and different types of services used during travel. Generally it is 10%.

How much travel allowance is allowed in income tax?

Maximum conveyance allowance is equal to 19200. While LTA depends on the actual spent on the travel.

What is travel allowance in salary?

Fixed percentage of salary that is dedicated to work related travel of the employee.

What is the limit of Traveling allowance exemption?

The traveling allowance exemption limit is the actual amount spent on the journey.

How do I claim travel allowance on my taxes?

Keep accurate records, determine the nature of your travel allowance, calculate the allowable deduction/exemption, claim deduction/exemption in tax return, and keep supporting documents ready.

Can I carry forward the unclaimed LTA of a block year to the next block year?

No, you cannot carry it forward.

What expenses can be included under LTA?

Transportation expenses, accommodation expenses, sightseeing expenses, and food and beverage expenses.

What factors should be considered when calculating travel allowance?

When calculating travel allowances, consider factors like destination, duration, accommodation costs, meals, transportation, and incidental expenses. Also, account for your organization policies, tax regulations, and the purpose of the trip. Accurate record-keeping and expense receipts are crucial.

Is there a standard formula for calculating travel allowance?

There is not a universal standard formula for travel allowance, as it varies widely among organizations and regions. Some may use per diem rates, while others calculate expenses individually. Compliance with local tax laws and company policies typically guides the calculation method used.

' src=

Pratyush is a traveling enthusiast who always looks for innovations in business travel management. He has 5 years of experience writing content on corporate travel management and working closely with expert business travel facilitators.

Leave a Reply

Related posts.

Employee Spending Limits On Corporate Cards

5 Types Of Employee Spending Limits On Corporate Cards

Setting employee spending limits on corporate cards is a common practice for organizations to manage expenses and maintain financial control. Corporates can easily track expenses and set limits on the credit cards enhancing the reimbursement Read more…

Business Travel Concierge In Dubai

Top 18 Benefits Of Using Business Travel Concierge In Dubai

Concierge services make the life of travelers better by offering help in booking and managing corporate trips. A business travel concierge in Dubai provides dedicated support during each process of the trip. This streamlines every Read more…

Business Travel Automation In The Gulf

Top Ways To Use Business Travel Automation In The Gulf

With the innovation of generative AI, there was a sudden boom in the automation of office work. Professionals have started to realize the power of automation providing a peak into the future. Business travel automation Read more…

Let's get started!

Corporate Travel Requirements

Thanks for submitting your details.

We'll get back to you shortly.

leave travel allowance calculation in salary

Precision in Payroll - Acing Taxes and Compliance

Webinar HR Metrics Magic: Transforming Insights into Actions Register Now

Leave Travel Allowance (LTA)

What is lta.

LTA or Leave Travel Allowance, is a tax exemption for an allowance paid to the employee by the employer for travel expenses, while he or she is traveling on a leave.

Leave travel allowance can act as a tool for employees to save on taxes while taking leaves for traveling across India. Section 10(5) of the Income Tax Act, 1961, along with Rule 2B, provides tax exemptions and outlines the conditions for such exemptions. However, individuals opting for the New tax slab are not eligible for leave travel allowance.

An employee needs to plan their travel according to the purpose of claiming LTA exemption successfully. The income tax department of India has listed some rules and regulations regarding claiming exemptions under LTA.

Eligibility Criteria for Claiming LTA

The eligibility criteria for claiming LTA or leave travel allowance are as follows.

1. Legitimate evidence: Employees have to provide real pieces of evidence of their travel expenses to claim the LTA. It allows all modes of travel including land, train, and air. Only legitimate cost of travel is permitted for reimbursement. 2. Only travel costs: Other costs during traveling such as food, lodging, activities, etc are not covered under LTA. 3. Only domestic travel: Leave travel allowance only covers domestic travel across India. Employees cannot claim LTA for overseas (foreign trips) travel. 4. Twice in 4 years: The Government of India allows employees to claim LTA only twice in a block of 4 years. They cannot apply for LTA every fiscal year.

How to Claim Leave Travel Allowance (LTA)?

The process for claiming leave travel allowance differs according to the company. Employers commonly announce a due date for employees to claim for LTA. It is important to go through the LTA policy of the organization for a detailed claiming process.

In general, it contains these 3 basic steps:

  • Filling out the LTA form provided by the employer.
  • Submitting proof of travel details (documents).
  • Waiting for approval and reimbursement.

Documents Required for Claiming LTA

Employees might have to submit proof of travel records such as

  • Boarding passes
  • Receipts from travel agencies, etc.

Although in many cases, employers do not ask for the above-mentioned proof of records, it is advisable for employees to retain these documents.

LTA Rules for Exemption

1. employees can travel to any place in india..

Traveling to any destination across India is allowed under LTA. If the destination is not directly connected by recognized public transport, it will be assumed that the journey is made using the Indian railway using the shortest route. The exempted travel costs will be based on the fare of AC first-class rail tickets from the origin city to the destination city.

2. No international trips are considered.

In a case where the employee is taking an international or foreign trip, he/she/they is not eligible for an exemption.

3. There should be an actual journey to be eligible for claiming the exemption.

An employee cannot claim an exemption without traveling. The employer may ask for proof of travel records such as tickets, boarding passes, or receipts from the travel agent.

4. Food or stay or any other expenses are not considered.

Only the travel cost is exempted under LTA. Other expenses such as food, lodging, vacation activities, and sightseeing are not covered under LTA.

5. LTA can be claimed only for two journeys in a block of four years.

A block year is predetermined by the Government of India for employees to claim LTA. The first block year began in 1986 and is for a period of 4 years. The latest block year for claiming LTA is 2018-2021. Employees can claim exemption on travel expenses twice in one block of 4 years.

6. The family of the employee can also claim an exemption.

Employees can claim for exemption of travel expenses if any family member such as a spouse, children, dependent parents, brother, or sister takes a journey with or without them.

Unclaimed LTA – Carry Forward

In a case where an employee does not claim the leave travel allowance within the 4 years block, one of the 2 unused LTA is applicable to be carried forward to the next 4-year block. The employee can then use 3 LTAs in that block of 4 years.

To be eligible for the unutilized Leave Travel Allowance (LTA), the employee must undertake a trip during the first calendar year of the subsequent block. If the unclaimed LTA is not utilized within the initial year of the following block, it will expire and cannot be claimed at a later time.

What expenses can be included under LTA?

Leave Travel Allowance can be claimed only on the travel expenses incurred by an employee during a trip. It cannot be claimed for other expenses during the trip such as food, lodging, vacation activities, sightseeing, local conveyance, etc.

Calculation of Leave Travel Allowance

Calculating leave travel allowance includes evaluating the income from the salaries of employees. The LTA is exempted to a certain limit, beyond that, the rest of the amount is taxable under the general income tax slab.

For example, imagine an employee receiving an LTA of ₹10,000. If the travel expense incurred by him is ₹8,000, he is only allowed to claim an exemption for ₹8,000. The balance amount of ₹2,000 will be included in his taxable salary income.

5 Benefits of Leave Travel Allowance

1. Tax Saving: LTA allows employees in India to save on income tax by claiming exemption on travel fares or benefits for journeys taken within the country. 2. Family Coverage: LTA extends to the travel expenses of immediate family members, including spouses, siblings, parents, and children, provided they travel together with the employee. 3. Customization by Employers: Employers have the flexibility to determine the LTA amount. It is based on factors like pay scale, job responsibilities, and job title, allowing for customization in an employee’s salary structure. 4. Employee Motivation: Including LTA as part of the salary package can serve as an additional incentive for employees, boosting their overall job satisfaction and motivation. 5 . Domestic Tourism Promotion: LTA encourages employees to explore various destinations within India. This promotes domestic tourism and contributes to the growth of the country’s tourism industry.

Frequently Asked Questions (FAQs)

Q. who is eligible for lta.

Any salaried employee in India working under a registered company is eligible for LTA. The LTA can be claimed only on travel costs incurred by the employee. The travel expense claimed under LTA is only allowed on domestic travel. The LTA can only be requested if the employee has taken time off from work specifically for traveling.

Q. Can I claim LTA without traveling?

No, Leave Travel Allowance cannot be claimed without traveling. LTA is a benefit provided to employees to cover their travel expenses when they take leave for the purpose of travel. To claim LTA, you must have undertaken the travel and provide relevant proof such as tickets or travel receipts.

Q. What happens if LTA is not claimed?

Under the carry-over concession rules, if an employee has not claimed LTA in the previous block or has claimed it only once, they can still claim an additional LTA in the next block of calendar years. This allows the employee to avail of LTA tax breaks for up to three journeys in the current block of years.

Q. How many leaves are required to claim LTA?

The minimum number of leaves required to avail of the Leave Travel Allowance (LTA) exemption is not specified in the Income-tax Act. However, it is advisable to inquire with your employer as they may have their own requirement regarding the number of leaves needed to claim the exemption.

Q. Can I claim LTA in ITR?

Yes, you can claim LTA in your ITR. LTA is a tax benefit for travel expenses within India provided by employers. Keep necessary documentation and receipts for support. Ensure you meet the specific conditions and limitations set by your employer. Consult a tax professional or refer to the latest guidelines for accurate filing.

Q. Is Leave Travel Allowance only for Domestic Travel?

Yes, Leave Travel Allowance can be exempted only for domestic travel across India. It does not allow tax exemptions for foreign trips or overseas travel. It can be claimed for travel to any destination within India by means of road, rail, or air. The purpose of LTA is to encourage employees to take vacations and explore different parts of the country.

Q. How much is LTA in salary?

LTA deductions are applicable only for the shortest tour journey, including the place of departure and return. For instance, if a salaried employee receives ₹50,000, they can claim only ₹30,000. The remaining ₹20,000 will be treated as taxable income based on the applicable tax slab rates.

Q. What is the maximum limit in LTA?

The maximum limit for LTA (Leave Travel Allowance) is determined by the employer and may vary. However, there is a caveat that the exemption is limited to the lowest of the following three amounts:

  • The actual travel expenses incurred by the employee for the trip.
  • The amount specified by the employer in the LTA policy.
  • The amount is equivalent to the economy-class airfare of the national carrier (in case of air travel) or the first-class AC train fare (in case of rail travel) for the shortest route to the destination.

People also look for

By clicking “Accept", you consent to our website's use of cookies to give you the most relevant experience by remembering your preferences and repeat visits. You may visit "cookie policy” to know more about cookies we use.

The Economic Times

The Economic Times daily newspaper is available online now.

How to claim lta from your employer.

Whatsapp Follow Channel

Before availing of the tax benefit on LTA, there are, however, certain other important conditions attached to it. Read on to know them. Do keep in mind that tax exemption on LTA can be claimed in the old tax regime only for FY 2021-22.

tax63

Read More News on

(Your legal guide on estate planning, inheritance, will and more.)

Download The Economic Times News App to get Daily Market Updates & Live Business News.

Pay for offer: How IT freshers can protect themselves from hiring scams:Image

Pay for offer: How IT freshers can protect themselves from hiring scams

Won't be surprised if 3PL accounts for half of total warehouse leasing in future:Image

Won't be surprised if 3PL accounts for half of total warehouse leasing in future: Allcargo executive

Toyota, Hitachi return around 100% in one year. Is Japan finally out of the wood:Image

Toyota, Hitachi return around 100% in one year. Is Japan finally out of the woods?

Stock Radar: SRF breaks above downward sloping trendline on weekly charts; time :Image

Stock Radar: SRF breaks above downward sloping trendline on weekly charts; time to buy?

SBI’s parabolic rally has seen MFs book profits. Will investors continue to bet :Image

SBI’s parabolic rally has seen MFs book profits. Will investors continue to bet on Khara’s optimism?

Stock picks of the week: 5 stocks with consistent score improvement and upside p:Image

Stock picks of the week: 5 stocks with consistent score improvement and upside potential of up to 44%

The Economic Times

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.

avatar

To post this comment you must

Log In/Connect with:

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.

leave travel allowance calculation in salary

Prime Account Detected!

It seems like you're already an ETPrime member with

Login using your ET Prime credentials to enjoy all member benefits

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

leave travel allowance calculation in salary

Sign in to read the full article

You’ve got this prime story as a free gift.

leave travel allowance calculation in salary

Subscribe Now

(Credit card mandatory)

You can cancel your subscription anytime

(Pay Using Netbanking/UPI/Debit Card)

₹399 /month

Monthly PLAN

Billed Amount ₹399

No Trial Period

₹208 /month

Yearly PLAN

Billed Amount ₹2,499

15 Days Trial + Includes DocuBay and TimesPrime Membership.

₹150 /month

2-Year PLAN

Billed Amount ₹3,599

7 Days Trial

(Save 40.0%)

15 Days Trial

Get ET Prime for just ₹2499 ₹1749/yr

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

Holi Offer on ETPrime

Get flat 20% off

To Read the full Story, Subscribe to ET Prime

Access the exclusive Economic Times stories, Editorial and Expert opinion

Unlock this story and enjoy all members-only benefits.

  • 8 insight-rich stories published daily
  • 4000+ in-depth Stock Reports
  • Print Edition, the digital Newspaper
  • 2 Stock Researches everyday

90 Days Prime access worth Rs999 unlocked for you

leave travel allowance calculation in salary

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 calculation in salary

  • Submit Post
  • Union Budget 2023

Leave Travel Concession/Allowance (LTC/LTA)

Leave Travel Concession (LTC) is a type of benefit provided to employees by their employers to travel within the country during their leave period. The objective of this benefit is to encourage employees to take a break from work and explore new places while spending quality time with their family. The LTA/LTC scheme was introduced in the year 1986 by the Government of India to help employees working in government or public sector undertakings to travel and enjoy their time off. The scheme has since been extended to employees of private companies as well. Under the scheme, an employee can claim reimbursement for the travel expenses incurred during the leave period. The reimbursement is subject to certain conditions and restrictions, such as the distance of travel, the mode of transport used, the number of family members traveling, etc. 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 employees to take a break from work and explore new places while spending quality time with their family.

Section 10(5) of the Income Tax Act, 1961 with Rule 2B ensures the exemption of tax and also details the conditions subject to tax exemption. Income tax provision has laid down rules for claiming exemption of LTC/LTA which are provided below.

Conditions for Claiming LTC/LTA

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

  • Actual journey 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 LTC/LTA
  • 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.

Eligible LTC/LTA 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 LTC/LTA provided by the employer.

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

Exemption w.r.t various modes of transport

Procedure to Claim LTC/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.

Frequently Asked Questions

Who is eligible for LTA?

LTA/LTC is usually available to employees of government or public sector undertakings, as well as employees of private companies who have been granted this benefit by their employers.  

What exactly does Leave Travel Allowance cover?

Leave Travel Allowance covers only the travel expense incurred during the travel.

Can LTA exemption be claimed 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.

  How often can an employee claim LTA?

An employee can claim LTA/LTC twice in a block of four years. The current block of years is from 2022 to 2025.

Leave Travel Concession Allowance

What is the minimum trip duration under LTA/LTC?

According to Rule 8 of the Central Civil Services (Leave Travel Concession) Rules, 1988, an employee must undertake a journey of a minimum of three days to be eligible for the LTA/LTC benefit. The rule further states that the journey should be undertaken to a place that is different from the place of work and the employee’s residence. This rule applies to employees of the Central Government and is also followed by many State Governments and Public Sector Undertakings.

It is important to note that the LTA/LTC rules may vary for employees of private companies and other organizations. Employers may have their own guidelines and policies regarding the LTA/LTC scheme. Employees should check with their employer to understand the specific rules and conditions applicable to them.

How can an employee claim LTA/LTC?

To claim LTA/LTC, an employee must inform their employer about their proposed travel plans and apply for leave. The employee must then submit the travel bills and other supporting documents to the employer within a stipulated time frame. The employer verifies the documents and reimburses the employee for the eligible expenses.

What happens if an employee does not utilize the LTA/LTC benefit?

If an employee does not utilize the LTA/LTC benefit during the block of years, they can carry it forward to the next block of years. However, the employee must utilize the LTA/LTC benefit within the first year of the next block of years. If the benefit is not utilized within the stipulated time frame, it will lapse.  

Can LTA/LTC be availed for international travel?

No, LTA/LTC can only be availed for domestic travel within India.

Can an employee claim LTA/LTC for travel to their hometown?

Yes, an employee can claim LTA/LTC for travel to their hometown, provided that the hometown is located at a distance from the place of work and the employee’s residence.

Can an employee claim LTA/LTC for travel during their probation period?

Generally, employees who are on probation are not eligible for LTA/LTC. However, some employers may have their own policies on this and may allow employees on probation to claim LTA/LTC.

Can an employee claim LTA/LTC for travel by a private car?

Yes, an employee can claim LTA/LTC for travel by a private car, subject to certain conditions. The reimbursement amount is usually limited to the amount that would have been paid if the employee had travelled by public transport.

Can an employee avail of LTA/LTC for travel during the notice period?

An employee can avail of LTA/LTC during the notice period, provided that they have already applied for and obtained leave for the travel period before the notice period begins.

Can an employee claim LTA/LTC for travel to attend a family function?

No, an employee cannot claim LTA/LTC for travel to attend a family function, such as a wedding or a funeral. LTA/LTC can only be availed for travel during the employee’s leave period for the purpose of leisure travel.

Can an employee carry forward unutilized LTA/LTC to the next block of years?

Yes, an employee can carry forward unutilized LTA/LTC to the next block of years, but they must utilize it within the first year of the next block of years.

Can an employee claim LTA/LTC for travel to a foreign country if they travel by land or sea from India?

No, an employee cannot claim LTA/LTC for travel to a foreign country even if they travel by land or sea from India. LTA/LTC is only applicable for travel within India.

Can an employee claim LTA/LTC for travel during a period of leave without pay?

No, an employee cannot claim LTA/LTC for travel during a period of leave without pay. LTA/LTC can only be availed during the employee’s leave period.

Is there a limit on the amount that can be claimed under LTA/LTC?

Yes, there is a limit on the amount that can be claimed under LTA/LTC. The reimbursement amount is usually limited to the actual expenses incurred by the employee, subject to certain conditions and restrictions.

Can an employee claim LTA/LTC for travel expenses incurred for their dependents?

Yes, an employee can claim LTA/LTC for travel expenses incurred for their dependents, such as their spouse, children, and parents. However, there may be restrictions on the number of dependents who can travel.

Can an employee claim LTA/LTC for travel to multiple destinations?

Yes, an employee can claim LTA/LTC for travel to multiple destinations, provided that the total cost of travel does not exceed the eligible amount.

Can an employee claim LTA/LTC for travel to attend a business conference or seminar?

No, an employee cannot claim LTA/LTC for travel to attend a business conference or seminar. LTA/LTC can only be availed for leisure travel during the employee’s leave period.

Can an employee claim LTA/LTC for travel by a rented vehicle?

Yes, an employee can claim LTA/LTC for travel by a rented vehicle, subject to certain conditions. The reimbursement amount is usually limited to the actual rental charges paid by the employee.

Can an employee claim LTA/LTC for travel if they are on medical leave?

No, an employee cannot claim LTA/LTC for travel if they are on medical leave. LTA/LTC can only be availed during the employee’s leave period for leisure travel.

Can an employee claim LTA/LTC for travel during the first year of their employment?

Generally, employees who are in their first year of employment are not eligible for LTA/LTC. However, some employers may have their own policies on this and may allow employees in their first year of employment to claim LTA/LTC.

Can an employee claim LTA/LTC for travel if they have resigned from their job?

An employee can claim LTA/LTC if they have resigned from their job, provided that they have already obtained leave for the travel period before their resignation. The reimbursement amount will be subject to certain conditions and restrictions.  

Disclaimer:  This document is strictly private, confidential and personal to its recipients and should not be copied, distributed or reproduced in whole or in part, nor passed to any third party. The views expressed in this write-up are matters based on our understanding of the law and regulations prevailing as at the date of this write-up and our past experience with the tax, regulatory and other authorities as may be applicable. However, there can be no assurance that the tax authorities or regulators will not take a position contrary to our views.

  • salary income
  • « Previous Article
  • Next Article »

Print Friendly and PDF

Name: Keshaba Palo

Qualification: ca in practice, company: palo & co, location: mumbai, maharashtra, india, member since: 06 feb 2020 | total posts: 2, 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

leave travel allowance calculation in salary

Sir, we are given to understand that the journey should be performed by State run public transport wherever available. But your article says that the journey can be performed by private taxi. Can you please clarify this sir? We find it difficult to convince our employees when our top management says one thing and articles like this say something else.

Can wrongly mentioned BLOCK YEAR be rectified

The time limit to generate e-invoice on IRP for all tax invoices issued is within seven days it is applicable on May 1st. What If my invoice Date is on April 30th I should generate an e-invoice on IRP within 7 days?

Leave a Comment

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

Post Comment

Notice: It seems you have Javascript disabled in your Browser. In order to submit a comment to this post, please write this code along with your comment: df8f2d69cd5e2b26842bc62443bb1d3a

leave travel allowance calculation in salary

Subscribe to Our Daily Newsletter

Latest posts.

MSME Payments: Section 43(B)(h): Now at Present What You Have to do?

MSME Payments: Section 43(B)(h): Now at Present What You Have to do?

Applicability of provisions of section 43B(h) of Income Tax Act,1961

Applicability of provisions of section 43B(h) of Income Tax Act,1961

Crucial Role of Control Assurance Services in Modern Business

Crucial Role of Control Assurance Services in Modern Business

Trademark Fashion Statements: Cultural Significance of Fashion Items & Accessories

Trademark Fashion Statements: Cultural Significance of Fashion Items & Accessories

Cross empowerment under GST Law: A Common order from Madras High Court

Cross empowerment under GST Law: A Common order from Madras High Court

IRDAI (Registration, Capital Structure, Transfer of Shares and Amalgamation of Insurers) Regulations, 2024

IRDAI (Registration, Capital Structure, Transfer of Shares and Amalgamation of Insurers) Regulations, 2024

Tycoons Empire Intl. Ltd. Penalized for non-filing of Financial Statement

Tycoons Empire Intl. Ltd. Penalized for non-filing of Financial Statement

Responsibilities of RBI registered NBFCs with regard to submission & compliances

Responsibilities of RBI registered NBFCs with regard to submission & compliances

Varied practices while disclosing details of newly incorporated entity by listed entity

Varied practices while disclosing details of newly incorporated entity by listed entity

Assessment Order issued without taking into consideration reply filed by Assessee is not valid

Assessment Order issued without taking into consideration reply filed by Assessee is not valid

Featured posts.

GST Case Law Compendium – March 24 Edition

GST Case Law Compendium – March 24 Edition

Non-maintenance of registers & returns at Head office; MCA imposes Penalty

Non-maintenance of registers & returns at Head office; MCA imposes Penalty

Changes in Latest Income Tax Return (ITR) Forms for FY 2023-24

Changes in Latest Income Tax Return (ITR) Forms for FY 2023-24

Penalty for Non-Disclosure of Board Meeting Details in Director’s Report

Penalty for Non-Disclosure of Board Meeting Details in Director’s Report

249 days delay in KMP appointment: MCA Imposes Penalty of Rs. 19.13 Lakh

249 days delay in KMP appointment: MCA Imposes Penalty of Rs. 19.13 Lakh

MCA imposes penalty for holding directorships in violation of Section 165

MCA imposes penalty for holding directorships in violation of Section 165

Burn All Your Previous MSME Outstanding Before 31st March 2024?

Burn All Your Previous MSME Outstanding Before 31st March 2024?

Re-Opening of Correction Window for May 2024 CA Examinations | ICAI

Re-Opening of Correction Window for May 2024 CA Examinations | ICAI

आयकर धारा 43बी(एच) को लेकर अभी आपको क्या करना है

आयकर धारा 43बी(एच) को लेकर अभी आपको क्या करना है

U.S. flag

An official website of the United States government

Here’s how you know

Official websites use .gov A .gov website belongs to an official government organization in the United States.

Secure .gov websites use HTTPS A lock ( ) or https:// means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.

GSA Logo

  • Explore sell to government
  • Ways you can sell to government
  • How to access contract opportunities
  • Conduct market research
  • Register your business
  • Certify as a small business
  • Become a schedule holder
  • Market your business
  • Research active solicitations
  • Respond to a solicitation
  • What to expect during the award process
  • Comply with contractual requirements
  • Handle contract modifications
  • Monitor past performance evaluations
  • Explore real estate
  • 3D-4D building information modeling
  • Art in architecture | Fine arts
  • Computer-aided design standards
  • Commissioning
  • Design excellence
  • Engineering
  • Project management information system
  • Spatial data management
  • Facilities operations
  • Smart buildings
  • Tenant services
  • Utility services
  • Water quality management
  • Explore historic buildings
  • Heritage tourism
  • Historic preservation policy, tools and resources
  • Historic building stewardship
  • Videos, pictures, posters and more
  • NEPA implementation
  • Courthouse program
  • Land ports of entry
  • Prospectus library
  • Regional buildings
  • Renting property
  • Visiting public buildings
  • Real property disposal
  • Reimbursable services (RWA)
  • Rental policy and procedures
  • Site selection and relocation
  • For businesses seeking opportunities
  • For federal customers
  • For workers in federal buildings
  • Explore policy and regulations
  • Acquisition management policy
  • Aviation management policy
  • Information technology policy
  • Real property management policy
  • Relocation management policy
  • Travel management policy
  • Vehicle management policy
  • Federal acquisition regulations
  • Federal management regulations
  • Federal travel regulations
  • GSA acquisition manual
  • Managing the federal rulemaking process
  • Explore small business
  • Explore business models
  • Research the federal market
  • Forecast of contracting opportunities
  • Events and contacts
  • Explore travel
  • Per diem rates
  • Transportation (airfare rates, POV rates, etc.)
  • State tax exemption
  • Travel charge card
  • Conferences and meetings
  • E-gov travel service (ETS)
  • Travel category schedule
  • Federal travel regulation
  • Travel policy
  • Explore technology
  • Cloud computing services
  • Cybersecurity products and services
  • Data center services
  • Hardware products and services
  • Professional IT services
  • Software products and services
  • Telecommunications and network services
  • Work with small businesses
  • Governmentwide acquisition contracts
  • MAS information technology
  • Software purchase agreements
  • Cybersecurity
  • Digital strategy
  • Emerging citizen technology
  • Federal identity, credentials, and access management
  • Mobile government
  • Technology modernization fund
  • Explore about us
  • Annual reports
  • Mission and strategic goals
  • Role in presidential transitions
  • Get an internship
  • Launch your career
  • Elevate your professional career
  • Discover special hiring paths
  • Events and training
  • Agency blog
  • Congressional testimony
  • GSA does that podcast
  • News releases
  • Leadership directory
  • Staff directory
  • Office of the administrator
  • Federal Acquisition Service
  • Public Buildings Service
  • Staff offices
  • Board of Contract Appeals
  • Office of Inspector General
  • Region 1 | New England
  • Region 2 | Northeast and Caribbean
  • Region 3 | Mid-Atlantic
  • Region 4 | Southeast Sunbelt
  • Region 5 | Great Lakes
  • Region 6 | Heartland
  • Region 7 | Greater Southwest
  • Region 8 | Rocky Mountain
  • Region 9 | Pacific Rim
  • Region 10 | Northwest/Arctic
  • Region 11 | National Capital Region
  • Per Diem Lookup

Privately owned vehicle (POV) mileage reimbursement rates

GSA has adjusted all POV mileage reimbursement rates effective January 1, 2024.

* Airplane nautical miles (NMs) should be converted into statute miles (SMs) or regular miles when submitting a voucher using the formula (1 NM equals 1.15077945 SMs).

For calculating the mileage difference between airports, please visit the U.S. Department of Transportation's Inter-Airport Distance website.

QUESTIONS: For all travel policy questions, email [email protected] .

Have travel policy questions? Use our ' Have a Question? ' site

PER DIEM LOOK-UP

1 choose a location.

Error, The Per Diem API is not responding. Please try again later.

No results could be found for the location you've entered.

Rates for Alaska, Hawaii, U.S. Territories and Possessions are set by the Department of Defense .

Rates for foreign countries are set by the State Department .

2 Choose a date

Rates are available between 10/1/2021 and 09/30/2024.

The End Date of your trip can not occur before the Start Date.

Traveler reimbursement is based on the location of the work activities and not the accommodations, unless lodging is not available at the work activity, then the agency may authorize the rate where lodging is obtained.

Unless otherwise specified, the per diem locality is defined as "all locations within, or entirely surrounded by, the corporate limits of the key city, including independent entities located within those boundaries."

Per diem localities with county definitions shall include "all locations within, or entirely surrounded by, the corporate limits of the key city as well as the boundaries of the listed counties, including independent entities located within the boundaries of the key city and the listed counties (unless otherwise listed separately)."

When a military installation or Government - related facility(whether or not specifically named) is located partially within more than one city or county boundary, the applicable per diem rate for the entire installation or facility is the higher of the rates which apply to the cities and / or counties, even though part(s) of such activities may be located outside the defined per diem locality.

IMAGES

  1. Leave Salary Calculation in Excel (With Easy Steps)

    leave travel allowance calculation in salary

  2. Leave Travel Allowance (LTA): Claim Rule, Eligibility, Tax Exemptions

    leave travel allowance calculation in salary

  3. Leave Travel Allowance

    leave travel allowance calculation in salary

  4. What is Leave Travel Allowance for Salaried Employees

    leave travel allowance calculation in salary

  5. LTA -Leave Travel Allowance,How to claim LTA,LTA calculation,LTA new

    leave travel allowance calculation in salary

  6. Leave Travel Allowance: Claiming, Calculation, Tax Exemptions & Deductions

    leave travel allowance calculation in salary

VIDEO

  1. House Rent Allowance-Income Tax

  2. How to claim leave travel allowance #5

  3. Income tax calculation Salary L3

  4. Leave Travel Allowance

  5. Save your Tax while Travelling✈️ Leave Travel Allowance #incometax #lta #investment #business

  6. leave travel consession

COMMENTS

  1. Leave Travel Allowance (LTA)

    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.

  2. Leave Travel Allowance (LTA)

    Leave Travel Allowance or LTA is a type of allowance given to the employee by employers for travel. It covers within-country travel costs when he/she is on leave from work. Section 10 (5) of the Income Tax Act, 1961 with Rule 2B ensures the exemption of tax and also details the conditions subject to tax exemption.

  3. Leave Travel Allowance (LTA) Its Calculation, Rules and Exemption

    The employer makes this entitlement to an employee based on his discretion and decides the LTA amount specified in the salary contract's leave travel allowance section. LTA Benefits. Leave Travel Concession or Allowance is an important part of your salary structure and is also a great saving tax tool under the Income Tax Act 1961.

  4. What is LTA?

    What is Leave Travel Allowance (LTA) in Salary? Leave Travel Allowance or LTA is an allowance that employers pay to their employees when the latter is on leave and traveling, either alone or with family within India. ... The calculation is based on the fare for the shortest route to the destination by economy class of the national carrier.

  5. How to Calculate and Use the LTA Allowance?

    To claim Leave Travel Allowance (LTA) in India, you need to follow the steps outlined below: Step 1: Understand the LTA Policy: Familiarize yourself with your employer's LTA policy to understand the eligibility criteria, conditions, and documentation requirements for claiming LTA. The policy will specify the eligible modes of travel, eligible ...

  6. 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 ...

  7. Leave Travel Allowance (LTA): Claim, Rules, Exemption ...

    For instance, if the employer allows an LTA of INR 25,000 and the employee incurs travel costs of INR 35,000 on booking travel tickets, LTA exemption can be claimed only for INR 25,000. On the other hand, if the employee incurs a cost of INR 20,000, the exemption allowed would be INR 20,000 since it is lower than the actual LTC the employer allows.

  8. Leave Travel Allowance LTA

    Leave Travel Allowance (LTA) is provided to the employees for travelling. ... The Leave Travel Allowance calculation is as under: Particulars Amount; Amount of LTA Received: 4500: Less: Amount of LTA Exempt-(3500) Amount of taxable LTA added to Salary Income: 1000: LTA Rules for Exemption u/s 10(5)

  9. Leave Travel Allowance (LTA): Benefits, How It Is Calculated and

    Once you calculate your deduction amount, you can claim it while filing your tax return. Any excess amount on account of LTA forms a part of your salary. This is taxable as per your tax slab. In conclusion . Leave Travel Allowance is a part of your CTC that the employer provides. It serves as compensation that you receive while travelling on leave.

  10. Leave Travel Allowance (LTA): Claim, Calculation, Exemption, Benefits

    Learn more about LTA Claim procedure, Calculation, Exemption, Benefits etc. Leave Travel Allowance (LTA): Leave Travel Allowance is an allowance that an employee receives every month offered by employer when the employee travelling alone or with their family. ... LTA (Leave Travel Allowance) is an important salary component for an employee ...

  11. Leave Travel Allowance: Claiming, Calculation, Tax Exemptions & Deductions

    Leave Travel Allowance: Know more about leave travel allowance, claiming, documents required, calculation, tax exemptions, deductions, restrictions and other important details. ... Now that individuals know what is LTA in salary, let's focus on the exemption for FY 2023-24, a list of expenses exempted under LTA and other details., a list of ...

  12. 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 ...

  13. LTA: Meaning & Conditions to claim Exemptions- Learn by Quicko

    Conditions to Claim LTA Exemption. Section 10 (5) of the Income Tax Act along with Rule 2B has prescribed the conditions and limit of exempt leave travel allowance. Leave travel allowance should be a part of the employee's salary structure. An exemption is available for actual expenses incurred by the employee including their family for ...

  14. Leave Travel Allowance (LTA)

    For instance, if Rs. 30,000 of LTA is granted by your employer and the actual travel cost incurred is Rs. 20,000 by an employee then the exemption will only be available till Rs. 20,000. Therefore the balance of Rs. 10,000 will be included in the taxable salary income. Procedure to Claim LTA. LTA claims are generally handled by employers.

  15. Leave Travel Allowance Exemption: A Comprehensive Guide

    Leave Travel Allowance (LTA) is a tax-free allowance provided by employers as part of their employees' salary component. It allows employees to claim tax exemption on the costs incurred for leisure travel within India. Under LTA, employees are permitted to take a leave from work and travel on vacation, with the costs incurred considered as a ...

  16. How To Calculate Travel Allowance For Tax Exemption

    One must find out when to claim Leave Travel Assistance before knowing how to calculate Leave Travel Allowance in salary. Tax breaks for LTA travel expenses are available twice in the four years' block to eligible employees. The system of block years began in 1986. The current block is 2022 -2025.

  17. Confused About How To Claim LTA? Here's Everything You Need To Know

    LTA basically covers the expenses incurred by the employee for his own and family member's travel. Spouse, parents, siblings and children are considered to be family members as far as the ...

  18. What is Leave Travel Allowance (LTA)

    Calculation of Leave Travel Allowance. Calculating leave travel allowance includes evaluating the income from the salaries of employees. The LTA is exempted to a certain limit, beyond that, the rest of the amount is taxable under the general income tax slab. ... The balance amount of ₹2,000 will be included in his taxable salary income. 5 ...

  19. LTA Rules: How to claim Leave Travel Allowance?

    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 ...

  20. 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 ...

  21. Leave Travel Allowance (LTA)

    Leave Travel Allowance Calculation. In a block of four years, an employee can avail the benefits of LTA for two journeys only. The block year is different than a financial year and is created by the Department of Income Tax to fulfill the purpose of LTA exemption. The Leave Travel Allowance calculation has started from the year 1986 and ...

  22. Leave Travel Allowance (LTA)

    One such legal exemption that is frequently utilized by employers and available to the salaried class is the Leave Travel Allowance (LTA)/Leave Travel Concession (LTC). For LTA received from a previous employer about travel after retirement or cessation of employment, there is also an LTA exemption. Within a four-year block, LTA can be claimed ...

  23. Leave Travel Concession/Allowance (LTC/LTA)

    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 employees to take a break from work and explore new places while spending quality time with their family. Section 10 (5) of the Income Tax Act, 1961 with Rule ...

  24. Privately owned vehicle (POV) mileage reimbursement rates

    GSA has adjusted all POV mileage reimbursement rates effective January 1, 2024. Modes of transportation. Effective/applicability date. Rate per mile. Airplane*. January 1, 2024. $1.76. If use of privately owned automobile is authorized or if no government-furnished automobile is available. January 1, 2024.