What is Leave Travel Allowance or LTA?
Let’s find out how you can save tax while traveling with your family.
Conditions for claiming Leave Travel Allowance
You can claim travel costs of
Conditions for eligibility
Block of 4 Years
How to claim Leave Travel Allowance
Now, let’s use the income tax calculator to see how much tax you can save while travelling with your family.
Step 2: Key in your salary details
Step 3: Declare your investments
Step 4: Now, calculate income tax
As per the calculation, you have a total tax liability of INR 100000
Step 5: Declare your Leave Travel Expenses
I’ve travelled with my family to Jaipur and the cost of travel was INR 60000.
Step 6: Calculate income tax again
As you see, the total tax liability has come down by INR 12480
LTA exemption allows you to travel within India with your family while saving Income Tax!
Frequently Asked Questions
What is Leave Travel Allowance(LTA)?
LTA is an allowance the employer pays to the employee to cover his travel expenses while on leave.
What is Leave Travel Allowance Exemption(LTA Exemption)?
If your employer pays you LTA and if you have travelled within India, you can claim for an exemption under Section 10(5) of the Income Tax Act.
Is LTA eligible for Income Tax Exemption?
As per Section 10(5) of the Income Tax Act 1961, Leave Travel Allowance is eligible for Income tax Exemption.
How many times LTA can be claimed in an year?
LTA can be claimed only twice in a block of 4 years. The current block period of four years is from January 1, 2022 to December 31, 2025.
What expenses can be claimed under LTA?
Only travel expenses can be claimed. Other expenses during travel such as food and accommodation are not allowed for exemption.
Can I claim LTA exemption on International travel cost?
LTA exemption is allowed only for travel within India.
What if I haven’t claimed any LTA exemption in a block of 4 years?
If you haven’t claimed LTA exemption or if you have claimed only once during a block of four years, you can claim one additional LTA in the next block of four years. But the additional one should be claimed in the first calendar year of the block of 4 years.
How to calculate Leave Travel Allowance exemption?
Use the Income Tax Calculator to calculate your Leave Travel Allowance exemption. First, key in data from your payslip, and then declare your travel expenses during leave.
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