Leave Travel Allowance

by Gopal Gidwani on August 22, 2009 · 0 comments

in Taxation,Uncategorized

• Leave Travel Allowance is a special allowance which employed people get as a part of their salary. This allowance is given for taking vacations and for availing this facility the employee can claim exemption from his taxable salary.
• This allowance can be claimed for vacation related travel expenses within the country.
• This exemption benefit can be availed twice in a block of 4 years. These blocks are 2006 – 2009, 2010 – 2013.
• The amount availed as exemption has to be spent on transportation (rail, air or road) on self and family. Family includes spouse, children, parents, brothers and sisters.
• Any expenses apart from travel; related to lodging, boarding, food and hotel are not eligible for LTA exemption.
• The exemption is available only for primary travel between the places of start of journey to the destination place. Other travel expenses before primary travel and after primary travel are not eligible for exemption.
• The exemption can be availed for travel only within Indian. Foreign travel is not eligible for exemption.
• For deciding the exemption amount the shortest travel route is considered.
• If the travel is by air the maximum amount that can be claimed as exemption is the economy class airfare to the travel destination by the shortest route. If the travel is by rail the maximum amount that can be claimed as exemption is AC 1st Class rail fare to the travel destination by the shortest route.
• The person needs to submit travel tickets or travel receipt as proof to claim the exemption.
• If the LTA amount is not claimed as exemption if no travel is done, then it can be availed as part of regular salary. But this amount would be taxable.
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