Understanding Leave Travel Allowance (LTA)

Leave Travel Allowance (LTA) is a tax-saving benefit for salaried employees, offering exemptions on travel expenses within India. It's designed to reduce taxable income under specific conditions, covering transportation costs but not accommodations or meals.

Eligibility and Claim Conditions

Eligible employees can claim LTA under Section 10(5) of the Income Tax Act, 1961, for themselves, their spouse, and children. Dependent parents and siblings may also qualify if they rely financially on the employee. The exemption strictly applies to travel costs, excluding international travel.

How Often Can You Claim LTA?

Employees are allowed to claim LTA for a maximum of two journeys within a four-year block period, currently from January 1, 2022, to December 31, 2025. Unused LTA can be carried forward to the next block, but claims require valid proof of travel and expenses.

What Does LTA Cover?

LTA applies to domestic travel, covering airfare (economy class), rail (first-class AC), or road travel (equivalent to first-class AC train fare). It does not include accommodation, meals, sightseeing, or local transport expenses.

Deadline to Submit Documents

To claim LTA, employees must submit original travel tickets, boarding passes, and payment proof by December 31, 2025. A signed Form 12BB is also required as evidence of expenditure.