Leave travel allowances are grant provided by the employer for taking vacations. (Leave Travel Allowance is also known as Leave Travel Concession or Leave Travel Assistance). It is in connection with the journey of employees and his family on leave to any place in India or in connection with proceeding to any place in India after retirement from service or termination of his service.

Leave travel allowances received is exempt from tax on being actually spent subject to the following condition:

• Where journey is performed by air, an amount not exceeding the air economy fare of the National Carrier by the shortest route to the place of destination;

• Where places of origin of journey and destination are connected by rail and the journey is performed by any mode of transport other than by air, an amount not exceeding the air-conditioned first class rail fare by the shortest route to the place of destination; and

• where the places of origin of journey and destination or part thereof are not connected by rail and the journey is performed between such places, the amount eligible for exemption shall be:

• where a recognized public transport system exists, an amount not exceeding the 1^st class or deluxe class fare, as the case may be, on such transport by the shortest route to the place of destination; and

• where no recognized public transport system exists, an amount equivalent to the air-conditioned first class rail fare, for the distance of the journey by the shortest route, as if the journey had been performed by rail.

Other relevant points

• The concession shall not exceed the actual amount of expenditure incurred on the performance of such journey.
• The taxpayer can claim two journeys in a block of four years. But, you cannot claim both the journeys in one year.
• One can carry forward his LTA. One LTA can be brought forward and claimed in the first year of the next block.
• Without performing any journey and incurring expenses thereon, no exemption can be claimed. So, the one should actually spend this amount on transportation. The amount can be spend for self or your family members ( it includes spouse, children and dependent parents, brothers and sisters) but the taxpayer (you) must be travelling with your family.
• Exemption is limited to expenses on air fare, rail fare, bus fair only. Accordingly, no other expenses like taxi charges, lodging/boarding expenses, food related expenses etc. are  eligible for LTA.
• No exemption is available for foreign travel.

We at Taxmantra.com have the expertise in handling individual taxation, do let us in case you any such issue troubling you.

Taxmantra.com provides most hassle free tax return filing/ online return filing experience. Once you have collected, your salary certificate and other documents, we request you to please log in to www.taxmantra.com/ereturns or you can also directly mail at info@taxmantra.com to submit the details. Upon receiving the documents, we would contact you to file your return of income.

Other relevant points

• The concession shall not exceed the actual amount of expenditure incurred on the performance of such journey.
• The taxpayer can claim two journeys in a block of four years. But, you cannot claim both the journeys in one year.
• One can carry forward his LTA. One LTA can be brought forward and claimed in the first year of the next block.
• Without performing any journey and incurring expenses thereon, no exemption can be claimed. So, the one should actually spend this amount on transportation. The amount can be spend for self or your family members ( it includes spouse, children and dependent parents, brothers and sisters) but the taxpayer (you) must be travelling with your family.
• Exemption is limited to expenses on air fare, rail fare, bus fair only. Accordingly, no other expenses like taxi charges, lodging/boarding expenses, food related expenses etc. are  eligible for LTA.
• No exemption is available for foreign travel.

We at Taxmantra.com have the expertise in handling individual taxation, do let us in case you any such issue troubling you.

Taxmantra.com provides most hassle free tax return filing/ online return filing experience. Once you have collected, your salary certificate and other documents, we request you to please log in to www.taxmantra.com/ereturns or you can also directly mail at info@taxmantra.com to submit the details. Upon receiving the documents, we would contact you to file your return of income.