Rajiv505

Rajmore22

SUNEELKMASUR

Saurav1314

Dec 27, 2018 LTA exemption is available for 2 journeys in a block of 4 years. The block applicable for the current period is calendar years 2018-21. Leave Travel Allowance (LTA) forms a part of an employee's total CTC (cost-to-company).

LTA exemption is available for 2 journeys in a block of 4 yrs. While the current block is 2018-21, one can carry it forward to the next block year. Employees who are eligible for Leave Travel Allowance (LTA), as part of their cost-to-company (CTC), can claim reimbursement of expenses incurred on travel. A block year is different from a financial year and is decided by the Government for LTA exemption purposes. It comprises of 4 years each. The very first 4-year block commenced from 1986. List of block years are 1986-1989, 1990-93, 1994-97, 1998-2001, 2002-05, 2006-09, 2010-13 and so on. India's government is considering rolling back some parts of its agricultural reforms after they triggered the biggest protests by farmers in years, officials said on Friday. Dec 29, 2017 It is only available in a block of two years and current period is calendar year 2014-17. Some of the ways how you can claim your LTA amount for which tax break are: Air travel. If you are travelling on the economy class fare of the national carrier by the shortest route then you are eligible to claim the LTA. Multi-destination journey.

Harsha Shetty

Roshani.Rathod

rajmore22

Hi All up to what limit the LTA is exempted under I.T. ( e.g. in Rupees ) suppose if one person basis is 45000/- then and his LTA is yearly 90000/- then is it allowed by I.T. Raj
From India

Ashi Rana

As per my knowledge, the LTA is exempted upto Rs. 15000/- per year i.e. Rs. 1250/- per month and is also deemed non- taxable for 2 times in a 4 years. thanks and regards,
From India, Solan

SUNEELKMASUR

Dear Raj,
LTA (Leave against Travel) has no limit as per Income tax law under section 10 (5) rule (2b). Any person can avail this facility two times in the block of 4 years. Current block is 2010 - 13. There are specific rules need to be followed to get the benefit.
Travel should be performed by the employee or employee and his family together.
Family means spouse, children, dependent Parents brothers & sisters.
Leave for minimum of 3 working days to be taken.
LTA Claim should be approved by HR - (Leave confirmation)
The opted amount will be withhold from monthly salary & reimbursed on submission of bills.
Exemption is available in respect of travel to any one place within India by the shortest route
Exemption is available only towards travel fare and does not include any other expense.
regards
suneel.
From India, Bangalore

rajiv505

In fact, if we look precisely, LTA is leave travel allowance and it is fully taxable under Income Tax Act as it is a fixed allowance.
However, LTC is exempt u/s 10(5). there are plenty of rules & conditions prescribed to avail such exemption as described above by Suneel.
But I have never come across any specific limit of exemption for LTC as stated above by some members. I believe it is tax free upto the amount actually spent by employee with proofs submitted (subject to other conditions fulfillment)
Rajiv
From India, Gurgaon

natraj.38

Hi all,
LTA leave travel allowance is a perk that is given by the company to an employee and this is usually taken at the end of the year usually Dec. This facility is available to the employee and his family members i.e, spouse and children. All expenses pertaining to this are taken care of the company subject to the limit and the employee producing proof of expense.
As per my knowledge, this would be treated as a perk and taxable.
Please correct me if wrong.
Tks Raj
From India, Bangalore

Premendra Pranay

LTA is Local Travel Allowance .
LTC is Leave Travel Concession.
If you mean something else by acronym LTA please clarify.
If you mean Leave Travel Allowance [ or Leave Travel Concession ] , then income tax exemption is limited to Air Economy or AC1 to the shortest route subject to submission of documentary evidence and number of family members eligible etc etc.. There is no restriction on amount which can be paid under this head. Amount paid minus actual spent on traveling ticket is taxable as per the slab. This concession is allowed twice in a block of four years.
If you mean Local Travel Allowance , then daily rate of Rs 50.00 of actual attendance is exempt. The latest daily rate value needs rechecking .
From India, Mumbai

Aruntalwar

Section 10(5) of the Income-Tax Act, 1961, read with Rule 2B, provides for the exemption and outlines the conditions subject to which LTA is exempt.
Exemption of Fare Only - LTA exemption can be claimed where the employer provides LTA to employee for leave to any place in India taken by the employee and their family. Such exemption is limited to the extent of actual travel costs incurred by the employee. Travel has to be undertaken within India and overseas destinations are not covered for exemption.
Exemption on Actual Expense - For example, where an employer provides LTA of Rs 25,000, but an employee spends only Rs 20,000 on the travel cost, then the exemption is limited to only Rs. 20,000.
Travel cost means the cost of travel and does not include any other expenses such as food, hotel stay etc.
The meaning of ‘family’ for the purposes of exemption includes spouse and children and parents, brothers and sisters who are wholly or mainly dependent on you.
An individual would not be able to claim the exemption in relation to his parents, brother or sisters unless they are wholly or mainly dependent on the individual. Further, exemption is not available for more than two children of an individual born after October 01, 1998.
This restriction does not apply in respect of children born before this date, and also in cases where an individual, after having one child, begets multiple children (twins or triplets or quadruplets, etc.) on the second occasion. The term “Child” includes a step-child and an adopted child of the individual.
Amount Exempted
1. Journey performed by Air - Economy Air fair of National carrier by the shortest route or the amount spent which ever is less will be exempt
2. Journey performed by Rail – A.C. first class rail fare by shortest route.or amount spent which ever is less will be exempt.
3. Place of origin and destination place of journey connected by rail but journey performed by other mode of transport - A.C. first class rail fare by shortest route or amount spent which ever is less.
4. Place of origin& destination not connected by rail(partly/fully) but connected by other recognised Public transport system - First class or deluxe class fare by shortest route or amount spent which ever is less.
5. Place of origin& destination not connected by rail(partly/fully) and not connected by other recognised Public transport system also – AC first class rail fare by shortest route (as the journey had been performed by rail) or the amount actually spent ,which ever is less.
From India, Delhi

Harsha Shetty

Dear Premendra,
LTA (Leave against Travel) has no limit as per Income tax law under section 10 (5) rule (2b). Any person can avail this facility two times in the block of 4 years. Current block is 2010 - 13. There are specific rules need to be followed to get the benefit.
Travel should be performed by the employee or his family together. Family means spouse, children, dependent Parents brothers & sisters.
Leave for minimum of 3 working days to be taken.
Exemption is available in respect of travel to any one place within India or abroad on producing the original bills on Travel. If you travel by Air you need to produce ticket as well as boarding pass of traveler, If you travel by car you need to produce original bill, Trip sheet, Toll gate tickets (in originals). But LTA will be calculated only shortest rout as well as 3 tier train rates.
It is benefit the employee only in terms of saving some amount of income tax
Regards
Harsha
From India, Bangalore

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