• Feb
  • 04
  • 2014

Taxability of Leave Travel Allowance (LTA) – Section 10(5)

CA Sandeep Kanoi

Leave Travel Allowance (LTA) is the most common element of compensation adopted by employers to remunerate employees due to the tax benefits attached to it.  An LTA is the remuneration paid by an employer for Employee’s travel in the country, when he is on leave with the family or alone. LTA amount is tax free. 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. Through this write-up, I want to shed light on the taxability and some other interesting relevant aspects which you as a salaried employee must keep in mind.

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. The total cost of the holidays is not covered, only the travelling cost is covered.

Travel within India only allowed- Travel has to be undertaken within India and overseas destinations are not covered for exemption.

Exemption on Actual Travel 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.

Meaning of Family for LTA :- 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.

Restriction on Number of Child for Claiming LTA :- 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.

Is exemption available every year?

No. The tax rules provide for an exemption only in respect of two journeys performed in a block of four calendar years. The current block runs from 2010-2013. If an individual does not use their exemption during any block on any one or on both occasions, their exemption can be carried over to the next block and used in the calendar year immediately following that block.

In such cases, the journey performed to claim such exemption will not be counted for the purposes of regulating future exemptions allowable for the succeeding block. For example, Mr. X joins an organisation on April 1, 2008 and is entitled to a LTA of Rs 30,000 per annum (financial year 2008-09).

X undertook a journey in December 2008 and used his exemption. However, for his LTA entitlement for 2009-10, he did not undertake a journey during the calendar year 2009.

He can undertake the journey in 2010 to claim the exemption in relation to the LTA. He would also be able to use the LTA benefit for two other journeys which he can undertake in the current block 2010-13 in relation to his LTA entitlement for future years.

Proof of travel

Supreme Court has held in the case of Larsen & Toubro and ITI that employers are under no statutory obligation to collect bills and details to prove that the employees had utilised the amounts obtained against these claims on travel and related expenses.

Employers while assessing the travel allowance claims, do not need to collect proof of travel to submit to the tax authorities. Though it is not mandatory for employers to demand proof, they still have the right to demand documentary proof depending on its policy. The Judgement of Supreme Court has only moved the responsibility from the employer to the employee, the assessing officer can still ask for the employee to provide details of travel.

The individual however needs to keep copies for his or her own records. Such proofs are helpful at the time of the audit of the tax return of the individual. Proof of travel could be, for example, tickets, boarding passes, invoice of travel agent, duty slip etc .

Here we would like also to draw attention of the employers to Circular No. 8/2013 dated 10-10-2013 which says that in respect of LTA The employer has to satisfy the obligation that leave travel (fare) concession is not taxable in view of section 10(5) the employer is not only required to be satisfied about the provisions of the said clause but also to keep and preserve evidence in support thereof. In our opinion the circular failed to take into account SC Judgment in the case of Larsen & Toubro and ITI and Employer are not bound to mandatorily preserve the Documents.

During the Fringe Benefit tax (FBT) regime, provision of paid holidays, including travel cost to any place, stay expenses etc. were subject to FBT in the hands of employers and were not taxable in the hands of individuals. Many employers extended the paid holiday benefit instead of LTA.

Now with the elimination of FBT , with effect from. April 1, 2009, paid holiday benefit is fully taxable in the hands of employees and, therefore, employers are reintroducing the LTA element by withdrawing the paid holidays benefit.

Does claiming LTA in alternate years mean that the two year entitlement gets added together?

It does. If you are entitled to an LTA of Rs.10,000 per year and do not utilize it for the the first year it is carried forward to the next year. In the second year you can claim the entire amount (Rs.20,000) as tax exempt provided you spend it according to the specification in LTA tax laws as detailed above.

Carry over concession for Leave Travel Allowance :- Leave Travel Allowance (LTA) comes with a carry forward feature. You can carry forward your Leave Travel Allowance in the situation that it has not been used. It can be brought forward and claimed in the first year of the next block.

Can I Claim LTA Twice in a Year:-  Though you can claim two journeys in a block of four years, you can claim the LTA benefit just once in a year. You cannot claim both the journeys in one year. So, while a person can get an income tax exemption for two journeys in a block of four calendar years, he can make a trip only once a year. If you make two trips in a year, you lose one. One way out is to claim one and make your spouse claim the other in case your spouse is also working.

LTA in case of Switch of JOB :- If you switch jobs, you can get the LTA not only from your present organisation but also from your former employer, if the concession is lying unutilised.  Let’s say that, in the 2010-13 block, you claimed LTA in 2011. In 2012, you switched jobs. You can still claim your second journey with your new employer. Of course, your new employer will ask to look at your earlier tax returns to see whether it has been claimed or not.

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.

Extract of Section 10(5)

“Section 10(5)  in the case of an individual, the value of any travel concession or assistance received by, or due to, him,—

(a)  from his employer for himself and his family, in connection with his proceeding on leave to any place in India ;

(b)  from his employer or former employer for himself and his family, in connection with his proceeding to any place in India after retirement from service or after the termination of his service,

subject to such conditions as may be prescribed (including conditions as to number of journeys and the amount which shall be exempt per head) having regard to the travel concession or assistance granted to the employees of the Central Government :

Provided that the amount exempt under this clause shall in no case exceed the amount of expenses actually incurred for the purpose of such travel.

Explanation.—For the purposes of this clause, “family”, in relation to an individual, means—

(i)  the spouse and children of the individual ; and

(ii)  the parents, brothers and sisters of the individual or any of them, wholly or mainly dependent on the individual; ]”

Conditions for the purpose of section 10(5) as Prescribed in Rule 2B of Income Tax Rules- Extract of Rule 2B

2B. (1) The amount exempted under clause (5) of section 10 in respect of the value of travel concession or assistance received by or due to the individual from his employer or former employer for himself and his family, in connection with his proceeding,—

(a)  on leave to any place in India;

(b)  to any place in India after retirement from service or after the termination of his service,

shall be the amount actually incurred on the performance of such travel subject to the following conditions, namely :—

[(i)  where the journey is performed on or after the 1st day of October, 1997, by air, an amount not exceeding the air economy fare of the national carrier by the shortest route to the place of destination;

(ii)  where places of origin of journey and destination are connected by rail and the journey is performed on or after the 1st day of October, 1997, 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

(iii) where the places of origin of journey and destination or part thereof are not connected by rail and the journey is performed on or after the 1st day of October, 1997, between such places, the amount eligible for exemption shall be :—

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

(B)  where no recognised 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.]

(2) The exemption referred to in sub-rule (1) shall be available to an individual in respect of two journeys performed in a block of four calendar years commencing from the calendar year 1986 :

[Provided that nothing contained in this sub-rule shall apply to the benefit already availed of by the assessee in respect of any number of journeys performed before the 1st day of April, 1989 except to the extent that the journey or journeys so performed shall be taken into account for computing the limit of two journeys specified in this sub-rule.]

(3) Where such travel concession or assistance is not availed of by the individual during any such block of four calendar years, an amount in respect of the value of the travel concession or assistance, if any, first availed of by the individual during first calendar year of the immediately succeeding block of four calendar years shall be eligible for exemption.

Explanation : The amount in respect of the value of the travel concession or assistance referred to in this sub-rule shall not be taken into account in deter-mining the eligibility of the amount in respect of the value of the travel con-cession or assistance in relation to the number of journeys under sub-rule (2).]

[(4) The exemption referred to in sub-rule (1) shall not be available to more than two surviving children of an individual after 1st October, 1998 :

Provided that this sub-rule shall not apply in respect of children born before 1st October, 1998, and also in case of multiple births after one child.]

 Republished with amendments


114 Responses to “Taxability of Leave Travel Allowance (LTA) – Section 10(5)”

  1. Subha says:

    Sir,
    I would like to know if LTA is not claimed, will it be paid by Employer by deducting the tax? Or do we need to forget the amount if not claimed?

  2. Avijit says:

    Hello,
    I travelled from Bangalore to Bangkok ( and back ) for my leave. The ticket raised by Indigo had a single PNR number and a total invoice value. However, it was basically two flights – one from bangalore to calcutta and the other from calcutta to bangkok and I was given two seperate boarding passes. But indigo is refusing me to provide a billing breakup for the bangalore to calcutta flight, hence I cannot claim the tax exemption. Please suggest.

  3. Sachin Bhatnagar says:

    hi, my father is a govt employee with delhi govt. I booked air india tickets for him thorugh make my trip.com.

    Now when my father submitted the documents for LTA claim in his office, they are saying that you have to book the tickets only through Air India website, and not through any other site. So on this basis, they have rejected my father’s LTA claim. I want to know if there is any such clause? Are they right in rejecting the LTA? If not, what is the other option through which the LTA can be claimed for the said journey.

  4. MEHUL says:

    MY LTA RS. 55569 WHICH AMOUNT CLAIM EXEMPTION. AY-2013-14
    LIMIT OF EXEMPTION

  5. Rsr murthy says:

    I retired on 31/03/2013.
    My employer paid LTA amount in April 2013 for the bill submitted In March 2013, for the journey in March,2013 while in service.
    In the TDS form 16 for 2013-14, the employer did not mention this amount along with pension paid by him.
    The amount pertains to 2012-13, but paid in 2013-14 and not mentioned in both the TDS forms.
    The amount appears in my bank pass book Of April 2014.
    Whether I have to show in ITR for 2014-15 or not,without my employer showing it,.
    Pl.guide

  6. SANDEEP KULKARNI says:

    Hello Sir ,
    Inspite of giving all travel related proofs ( air tkt , train tkt etc ) , my employer put the entire LTA amount as taxable and tax got deducted as seen in my Form16.
    Now , while filing return online from incometaxindiaefiling.gov.in website , how do I claim for LTA tax exemption ?
    Is there a field where I can mention this claim and what are details of this field ?
    Please respond asap.
    Kind Regards ..
    Sandeep Kulkarni

  7. Saurabh Waghmare says:

    I & my wife started from Pune to Delhi together by train whereas my father & my mother started from Nagpur to Delhi by a different train.Then we carried out the rest of the trip together to Shimla/Manali.On the return trip ,I & my wife once again came back to Pune from Delhi on one train while my parents travelled from Delhi to Nagpur on different train.My question is that can I consider there(my parents) journey tickets in my LTA claim.

  8. Mahesh U says:

    My company has a policy as follows, wanted to know if this is legally correct. 1. LTA can be claimed only if you gone on travel on 3 consecutive paid/earned leaves. So if I go on a leave on Fri to Monday with 2 days as weekends and 2 days of paid leave. As per policy I am not eligible to claim LTA for tax savings. 2. LTA can be claimed only on Earned Leave and not on any other leaves like Casual Leaves of Holidays. Request your help to understand the same.

  9. rosha nawale says:

    I have travelled by air (economy class – Rs 14000) from Pune to Banglore and then from Banglore took a car to travel Mysore, Ooty and Tirupati costing Rs 60,000. Can I claim LTA on both Air and Car travel i.e (14000+60000=74000) or I can cliam on any one of them.

    My LTA limit is around 1,20,000.

  10. S Mitra says:

    My travel date was in December 2013. However, I claimed the LTA in early 2014 for the travel in December. My company has mentioned that as per their policy – the LTA that I claimed would consume from my 2014 – 2017 block instead of 2010 – 2013 block since LTA consumption is based on “claim date” and not “travel date”. However, I believe that LTA is based on travel date and not claim date. Request you to let me know what is the correct understanding and which clock the December 2013 travel should consume?

  11. Sameer says:

    Hi

    I travelled to Bangalore to Delhi by Air Cost is Rs 10000 and again from Delhi, I took CAR, travelled to Manali, Shimla and Agra and Back to Delhi cost is Rs 19000. Back to Bangalore from delhi again by Air Rs 10000

    Now my question is can i claim LTA amount = Rs 39000 fully or only air fare Rs 20000.

    Thanks in advance.

  12. Ankit Verma says:

    Hi,

    Please refer to Circular No. 8/2012 [F.NO. 275/192/2012-IT(B)] dated 5-10-2012 on section 192 of the IT Act, 1961.

    It specifies that exemption shall not be available if the family members are travelling separately without the employee who is not on leave. It further states that section 10 (5) states that the exemption will be available as per the Central Govt. rules for LTA, as per which, journeys undertaken separately by the assessee and his family members at different points of time will be reckoned as one journey. So, while LFC eligibility is there, tax exemption is not there for family members who travel separately from the Assessee.

    In light of the above, please clarify whether tax exemption is available in the following two situations:

    1. Employee’s family avails LFC during March while the employee was on sick leave. The employee avails LFC in the subsequent month.

    2. Employee and her family avail LFC during the same period but they travel to different destinations separately.

  13. anusua says:

    If I travel from Chennai ( my work location)-kolkata-Chennai and parents travel from Delhi-kolkata-delhi… Journey dates are same. Can I avail LTA on the total travel cost of me and my parents?

  14. Akshay says:

    Hello,

    i want to know about LTA,i work in hyderabad. first i travelled from Hyderabad to Jaipur then Jaipur to Srinagar and came back from Srinagar to Jaipur and then Hyderabad. can it be treated as one journey?

  15. manika says:

    i traveled in 2011.but i am not claimed the LTA at that time.
    can i claim the same in 2014 for tax exemption.

  16. Rohit Chavan says:

    Hello Sir,

    we are take LTA April-13 (Jan-12 to Dec-12) and Dec-13 (Jan-13 to Dec-13) so please explain me we are take taxble amt yearly One or Two
    please replay

  17. Victoria Jayanti says:

    How many days of minimum leave to be taken to claim LTA as per law. Each Company is having their own rules but I need to understand how many days of leave is necessary to claim.

  18. kgb says:

    I have made travels for my LTA claim, and these travelling were not in single up and down mode, there was a journey break and continued through connecting other train and local taxi to complete my tour. These all travels were done during my LTA leave period, and I have all the bills for travel expenses (Trains and taxi), now suggest me wheather I can claim my entire travelling expenses as LTA claim or only single journey will be considered as non taxable and rest all travel exepenses are taxable. Please answer

  19. Santosh Honrao says:

    1. If I have travelled in 20-Dec-13 & Return in 15-Jan-2014 , it would be considered in LTA block 2010-2013 or not,

    2. If I planning to traveled in March 14 also can it would be considered for tax benefit or not (LTA block 2014-2017)

    can i claimed both LTA.

  20. Nandan Kumar says:

    Am getting approx Rs.35000/- every year as LTA allowance. Can I claim Rs.35000/- or Rs.70000/- in block of two years? Plz reply Mr at the earliest?

  21. SHEETAL DODA says:

    I have been on leave in January 2013. In which financial year can i claim the leave travel concession. whether f.y. 2012-2013 or f.y.2013-2014

  22. Raj says:

    As LTA claim is allowed only twice in a 4 year block, can the monies received as Leave travel allowance in remaining 2 years be included during the claims?

    Example,
    Employee A receives 12000 every year as LTA. He has not claimed for first 3 years, can he proceed to claim the 48000(accumulated sum for 4 years) of LTA on the 4th year.

  23. Amit says:

    Hi,

    Should the place of origin of journey be the place of employment? Or origin of journey can be from anywhere in India and destination to anywhere in India?

  24. Vishal Jain says:

    in this article you write
    “Proof of travel

    Supreme Court has held in the case of Larsen & Toubro and ITI that employers are under no statutory obligation to collect bills and details to prove that the employees had utilised the amounts obtained against these claims on travel and related expenses.”

    Which is not correct as per Circular No. 8/2013 dated 10-10-2013 “Obligation of the employer –The employer has to satisfy the obligation that leave travel
    (fare) concession is not taxable in view of section 10(5) the employer is not only required to be satisfied about the provisions of the said clause but also to keep and preserve evidence in support thereof.”

    So don’t make confusions for everyone.

  25. Praveen kumar says:

    Sir

    My self and my family traveled to tirupathi in the moth of May-13 due to non availability of Rail tickets i have traveled in AP State Road Transport can i eligible for LTA for road Transport for LTA

  26. Rupesh says:

    if I am going on 30 Dec 13 for ltc .can I avail tax exemption?

  27. Vinod says:

    If the travel commenced in March (29th March -onward journey) and Ended in April (8th April -return journey) . Whether I am eligible to claim the whole amount in current financial year or I was suppose to claim onward journey during last financial year.

  28. Sandip says:

    Hi,

    I am working with an IT firm and got 4200 as LTA per month(taxable). I am about to claim my tickets of about Rs 10000 for tax benefit.
    If it approves, will Rs 10000 will be subtracted from my annual taxable income or is there any percentage of reduction like HRA(40% of Basic+DA)?

  29. Srikanth says:

    I joined in the month of Sep-2013. My LTA per month is Rs 2000/-.

    Request you to let me know that I am eligible for LTA.

    My Employer is says that if I submit nor if I wont submit LTA proof they wont release my LTA as Taxable as my joining period is less than 6 months. They are telling that my LTA will be released in next year end 2014. Is this correct. Please advise.

  30. Kaustubh says:

    I have not claimed any LTA exemption during the block of 2007-2010 but I claimed exemption during financial year 2010-11 (which shall be considered for last block as claim in immediate next year) & financial year 2012-2013. Does that mean I can claim 1 more time for current block of 2010-2013?

  31. Pavan says:

    Hi,

    I worked with my previous organization from May 2011- July12, and I haven’t claimed the LTA when I was working over there. And I have travelled in March 2012. I shifted to my current organization in Aug 2012. Please let me know if I can claim that amount in my current organization.

  32. Rahul says:

    Can i claim LTA for Hyderabad to Goa to Delhi to Hyderabad trip?

  33. Sarika says:

    I was on maternity leave (3 months paid leave) from March’13 to May’13, I extended my leave for two month (June’13 & July’13) for medical reasons, which is without pay (LEAVE WITHOUT PAY), now company is not paying my medical & LTA for these two months as I want on leave without pay. please advise am I eligible to claim LTA/Medical for 10 months or 12 months.

    Please advise
    Thanks
    Sarika

  34. surbhi says:

    Hi!

    In case we have not utilized the LTA in 2010 and used it in 2011 for 2 consecutive years, will we get a tax exemption in LTA for the total amount utilized ( 10,000+10,000) and similarly we repeat the same thing in 2013 using it for 2 years together ( 10,000+10,000), do we again get a tax ememption in LTA in both the cases or get a tax ememption only ones i:e on 2 years LTA amount.
    Thanx

  35. Ankit Singhal says:

    hi,
    i travelled from Bangalore-> Delhi -> meerut(UP) alone.
    then from Meerut->Japiur->Meerut (with parents).
    Meerut->Delhi->bangalore (alone)

    can you please tell me what all fares of travel be included in my LTA

    bangalore-delhi and forth are included trips by flight, while rest be private cabs

  36. SAPNESH SHAH says:

    My company recently introduced a policy as follows, wanted to know if this is legally correct.

    1. LTA can be claimed only if you gone on travel on 3 consecutive paid/earned leaves. So if I go on a leave on Fri to Monday with 2 days as weekends and 2 days of paid leave. As per policy I am not eligible to claim LTA for tax savings.
    2. LTA can be claimed only on Earned Leave and not on any other leaves like Casual Leaves of Holidays.

    Request your help to understand the same.

  37. amit says:

    Hi,
    I traveled with my family (Wife, parents) by hiring a vehicle from Rajasthan to Jammu & back to Rajasthan via few other places on the route. My place is not connected by rail or air.
    Can I claim the LTA by submitting the Bill of Travel Agency for hiring car?
    Please help.
    What will happen if someone travel from a place that is not connected by rail & air.
    How can I claim LTA of rent given for hiring vehicle to travel agent?

    Thanks
    Amit

  38. Gaurav Sharma says:

    I am going to travel from pune to Delhi. The tickets I booked is from mumbai to Jaipur and from pune to mumbai and jaipur to delhi i am taking Cab service. I will be coming in the direct flight from delhi to pune. My question is:
    1) Can I claim LTA for the above journey?
    2) Can I also claim for Taxi?
    thanks

  39. saurabh sood says:

    Hi,

    I joined my organisation in july 2012 and i am entitled to claim LTA of 12000 per annum. My organisation has a rule that an employee cannot claim for LTA until he completes one service year. Now i am elegible to claim my LTA but company says that i can only submit the bills for journey onwards 1st Jan 2013 as its a income tax rule. I want to know that is there any such income tax rule? My company is based out in chennai.

  40. Mayuresh says:

    Sir/Madam

    What if I travel by my own vehicle ( CAR )? will it be applicable for LTA?
    If yes, then what kind of documents I need to submit for that? is there any minimum and maximum limit for LTA?

  41. Vijaya says:

    Dear Sir,

    We are having the following query with regard to LTA exemption:

    1) As per rules, LTA is exempted 2 times in a block of 4 yrs. Can employees claim LTA by combining two yrs together i.e. 2 times in the block and claim exemption 2 times?

    2) If iam eligible for 1st yr-Rs.30000/- & 2nd yr-Rs.35000/-, when i perform journey i spent Rs. 50000/-. What will be my LTA exemption? is it Rs. 35000/- or Rs. 65000/- (2 yrs) or Rs. 50000/- exemption & balance Rs. 15000/- taxable.

    Is there any provision under IT Act to address these situations? Pls clarify?

    Thanks,
    Vijaya

  42. krishan says:

    dear sir
    i have a query here .

    My LTA claim for 2011, 2012 & 2013 is accumulated thru carry forward . i have made a trip in june,2013 . i want to use my entitlement of 2011 and 2012 towards my June,2013 trip to get tax exemption since my 1 journey is left out of this block of 2010-2013 . I would like to carry forward my LTA claim of 2013 to next block & will be claiming along with 2014 entitlement .

    Can i do so ? kindly revert .

    regds

  43. uma.v says:

    i wantto know if a bank officergoesto europe on lfc whether it is taxable

  44. Bhaskar says:

    Hi,

    I travelled during September 2012 and submitted the bills for LTA in January 2013. Total cost of the journey was around Rs.34,000/- and the whole amount got approved for LTA. I got reimbursement of around Rs.15,000/- during February 2013 as my LTA eligibility was around Rs.15,000/- till end of March 2013. Am I eligible to get the remaining amount of around Rs.19,000/- during April 2013 as this is a new financial year.

    As per the FAQ’s LTA is a calender year not financial year. Is there any eligibility criteria with respect to financial year.

    Please advise.

    Thanks in advance,
    Bhaskar

  45. Rekha Nair says:

    Hi,

    I travelled in 2011-12 but did not claim LTA at that point. My LTA at that point was taxed. Can I claim LTA in this financial year? Please reply.

  46. Ray TK says:

    I didn’t claim LTA exemption for last three FYs of current LTA block years. Although I have received the LTA amounts every year.
    But I have availed the leave from 23rd March’13 to 08th April’13. And I will receive the LTA amount with April’13 salary. I have already received last year LTA amount in April’12.
    Then for which FY / LTA block year, the exemption I should claim?
    Please advise.

  47. Tmvasudevaan says:

    Dear Sir

    I have not claimed my LTA for 3 years in the block of 2009-13. is it possible to claim entire LTA of 4years in current year as a single claim after producing necessary travel bills?

    Pls clarify.

    Regards

    Vasudevan TM
    9380541125

  48. NilRIL says:

    Pls guide if an employee Travelled from 23.12.2009 to 02.01.2010, for which block exemptino should be considered.

  49. Sam says:

    I have a case like for the forward journey i traveled with my family but in the return journey i came back alone. Can i claim LTA for the family for the forward journey? or only mine to and fro journey will be considered?

  50. Dipanjan says:

    I had traveled from Kolkata to Gangtok and from Gantok to Lanchen, Gurudrongma, Lanchung, Yumthang and back to Gangtok and to Kolkata. As these places do not have a Rail or Public Transport System, can I claim Car Rental charges for exemption? If not how this tour will be considered for calculating tax exemption?

  51. Prateek says:

    Sir,

    In which FY can we claim the benefits of Income Tax exemption????
    I am working in a PSU & my company provides income tax exemptions once in a block of two years. I have travelled in March-2012. Can i claim income tax exemptions for the block year 2010-11 in the current FY i.e. 2012-13.

    Plz reply soon on my mail id.

  52. Nitin A. Pednekar says:

    Dear Sir,

    In context of LTA, i want to know what do u mean by Air travell by ” National Carrier”? does it mean that travell performed by Air India or Indian Airlines?

  53. Nitin A. Pednekar says:

    Dear Sir,

    In context of LTA, i want to know what do u mean by ” National Carrier”? does it mean that travell performed by Air India or Indian Airlines?

  54. Anubhav Dhawan says:

    Hi,
    I took my leave on 31 dec 2012 to 6 jan 2013. so this LTA comes under which year 2012 or 2013

  55. B.K.Mitra says:

    I joined in an organisation on January. Can I claim LTA before my 6 months probation period is over?

  56. Prasad says:

    In 2011 I joined job at XX company. At that time LTA allowable for me was 1300/pm ie 15600/-PA. In year 2012-2013 i received increment(?) letter showing decreased LTA 850/pm i.e 10200/-PA. I had not done any claim for any LTA from 2011 till todays date. If I will claim LTA now, how much amount will I get
    15600+10200 or 10200+10200
    Please help

  57. Arboreal says:

    If LTC involves foreign travel, then is it taxable even for SAARC countries like Nepal & Bhutan where visa and passport are not required?

  58. Sreenidhi says:

    Hi,

    Is it necessary to be on annual leave from company to avail LTA? Can i claim LTA if i am on LOP for the period when i am claiming LTA

  59. Rakesh Kumar says:

    I have 3 questions.
    1. Can i claim for LTA if i traveled on Saturday and came back on Sunday, and i did not use any on my company provided Leaves as both days are holidays for me.
    2. I work in Bangalore, while I have planed my Travel from Kolkatta to Gangtok and from Gangtok to Bangalore back. Can I claim LTA for this travel? Does my travel has to start and end from one Place only?
    3. I wish to travel from Kolkatta to Gangtok for which there is no Rail/Air connectivity. Can i claim the Taxi vouchers from the nearest Rail/Airport to Gangtok?

  60. Rambha says:

    What is national carrier.. pls,.clarify and

  61. Sreenivas says:

    Is it compulsory that Employee should start her / his travel from his work location for the LTA claim ? is it under the IT rule ? pls. suggest

  62. shally says:

    If I quit a company before completing a year , do I lose my LTA or can I take it after paying tax.

  63. Mohit Saraogi says:

    Dear Sir,

    With regards to LTA exemption, I have few queries –
    1. Is the entire amount of the tour package is exempted? For instance, if the tour package is for Rs. 30000/- of which Rs. 5000/- is traveling expense, Rs. 20000/- is lodging expense and Rs. 5000/- is food expense. Then, is entire amount of Rs. 30000/- exempted?
    2. If I have traveled in January 2012 then can I apply for LTA exemption in the current financial year (April 2012 – March 2013)?

    Regards,
    Mohit

  64. MIRZA says:

    Can LTA be claimed by a foreign national working in India if he is given Leave Travel allowance as per his pay structure?

  65. Sanjay D Nikam says:

    Hi,

    Am I liable for tax exemption for LTA by providing Car hiring receipt / bills.
    Kindly suggest.

    Regards,
    Sanjay Nikam

  66. Shrenikk says:

    I have recently joined a new organisation. Can i claim LTA for travel done prior to joining the company.

    Also, my travel was through both mediums – rail and air. Can i claim the total cost incurred for travel through both rail and air. To explain it more clearly – my ultimate destination was, say place Z. I stay at place X. there is no direct mode of travel from X to Z. Thus i took a train from X to another place Y and than from Y to Z via air.

    Pls advise.

  67. Praveen K Goel says:

    Dear Bhumika, I took a custom package for leave travel, it includes both i.e. cab rental & hotel stay expenses. Am i eligible for whole amount exemption?? Kindly confirm.

  68. Raj says:

    Do we need to submit bills for LTA..?

  69. minal says:

    Can I claim the exemption for the journey in Dec2012 for the not claim LTA amount for Financial year 2010-2011,2011-12,2012-13?

  70. Basavaraj says:

    hi,
    I took LTA in the year of June 2009 (Calender year), in that year only i got eligibility .

    now 2010-2013 block is running and my LTA eligibility amount is 35000 per annum..
    in this block only i claimed LTA in May-2010 and June 2011. my claiming eligibility over for running block.
    my question is will i get money Rs63000 (after deducting tax) after the block is over (i.e. at the end of December 2013)? if yes, i have to request for it to my finance department or it will come itself?

    - Basavaraj

  71. Sumit Gambhir says:

    Hi ,

    I have a simple question, If i am travelling from place A to place B using Air , then from Place C to place C using taxi/bus.Then can I claim the LTA from Place a to Place C ,if i have the all the required bills and taken the PL for 3 days.
    -Sumit gambhir

  72. Mangesh Sante says:

    Dear Experts,

    I am working in energy sector . In my company the company giving the LTA per year .
    can i give the LTA to employees on yearly basis.

    Regards

    Mangesh

  73. rakesh gupta says:

    what will be the treatment if the journey to say Goa is undertaken partly by rail and partly by flight

  74. saurabh kalra says:

    Hi, Please clarify a doubt, I have the LTA Limit of Rs. 50 Thousand per year and i took the LTA benefit during the FY-2010-2011 (Oct-Nov 2010), now again i would like to avail the same, am i eligible to do so. Looking forward to hear from your side soon

  75. Abhishek says:

    Can one avail LTA benefit while on maternity leave / paternity leave / compassionate leave ?

  76. Samir Sharma says:

    is LTA only paid after completion of the financial year. 

    example i have completed one year in the company and have to clame the second LTA after 2 years. so will the LTA be calculated on the basis on calender year or financial year. 

  77. Sachin Gupta says:

    Sir, i went to kashmir from Ahmedabad in june 11 in make my trip holiday package of Rs 57000/- which includes airfare. i want to claimthat in LTA but how can i segregate airfare from Holiday package.Also i was in AXIS till Sep and then moved to IDBI.How can i claim my LTA.

  78. Rajesh says:

    Hi,

    I have taken journey with a 5 days PL in March’2011, but did not claimed the any tax benefit for the FY 2010-2012. Can I submit the claims ( bills dated March’2011) for the current FY.
    Also I would like know, whether I can avail two exemptions in the same financulay Year, ie the claims of march’11 and 2nd one done during the FY 2011-2012.

    1. The LTA year for tax purpose starts from Jan01 to Dec31 . So if you travelled in March 2011 you can submit the bill and claim the LTA for year 2011-2012. The 4 year block of LTA is 2010 to 2013 . If you have not used 2 LTA in the last 4 year block 2006-2009 then you can caryy forward those to this block year that is 2010-2013.

    2. You can avail LTA only once in any year what is that mean is if you traveled in march 2011 and again in Dec 2011 , you can claim only 1 LTA . But let say you travelled in march2011 and planning to travel in feb 2012 then the march 2011 Lta you claim in 2011-2012 tax year and the feb 2012 travel you can claim in the 2012-2013 tax year.

  79. KHS says:

    Working in a ltd. co. where there is no bifurcation of allowances as LTA, Education, Magazine, Conveyance etc. but I get it under the head as Additional Allowances. I come under IT and lumpsum allowances given is also taxable so how do I claim LTA exemption or can I myself presume and take exemption on certain percentage of my allowances. Please reply ASAP.

  80. Benny says:

    Hi,

    I have taken journey with a 5 days PL in March’2011, but did not claimed the any tax benefit for the FY 2010-2012. Can I submit the claims ( bills dated March’2011) for the current FY.
    Also I would like know, whether I can avail two exemptions in the same financulay Year, ie the claims of march’11 and 2nd one done during the FY 2011-2012.

    Regards,
    Benny

  81. Dilip says:

    Hi,

    Whether the Proof of Travel is required. There was a ruling from supreme court that no documentary proof will be required from Employee.

    is this position taken by the Company is Ok.

    Dilip

  82. CA ASHOK SUCHAK says:

    Dear Bhumika,

    In my opinion;

    Section 10(5) and rules 2B of the Income-tax Act, 1961 and Rules framed thereunder are totally silent about who can claim the exemption with regards to the Leave Travel Allowance (LTA). It is further stated that the benefit of exemption is only for 2 time in the block of 4 years, which currently 2010 – 2013.

    The individual is eligible to claim exemption for travelling expenses incurred for the first class rail fare or economy class rail ticket (where journey destination is not connected by rail) for himself, his/her spouse and 2 children born on or after before 1st October, 1998. However, if there are 3 children and one is born before 1st October, 1998, the individual can claim exemption for all three children.
    As said earlier, nothing is mentioned in the rules to clarify who can claim the exemption. However, as a common rule, the exemption for the same travel expenses incurred cannot be claimed by both the individual i.e. husband and wife. However, you can claim exemption partially, you for your journey ticket and your husband for his journey ticket.

    It is important to note here is, in case of children born on or after 1st October, 1998 each individual can claim exemption of travelling expenses incurred for 2 children. Mean if one has 4 children, each husband and wife can claim exemption for 2 children. However, if two children, each one can claim exemption for 1 child or one can claim for both children depending on tax benefit and eligibility of LTA as part of salary. However, once claimed by one the same cannot be claimed by other.
    Also, the law does not barring any one or both, husband and wife, claiming exemption so far it is not overlapping or resulting in double claim.

    Regards

  83. Mahesh says:

    Hi

    Still it is block of 4 years; from Jan 2010 to Dec 2013

    It will be a good idea to make LTA per year instead of block of 4 years and fix a maximum of Rs.10000 pa.

    Lot of employees are misusing.

    Government should look into this aspect

  84. Vaibhav says:

    If I have traveled with proper PL Leave in the Month of Jan-Feb 2011, Can I claim the LTA (As non-taxable) in Current FY that is after Mar-2011 and before End of March 2012 ?

  85. K RAVI says:

    Hi,
    If the employer is the proprietor of the company, as an individual can he claim LTA tax benifit.

  86. VASEEM KHAN says:

    LTA IS TAXABLE OR NOT IF ARE THE TAXABLE THEN WHAT IS TERMS AND CONDITIONS IF ARE NOT TAXABLE ?

  87. bhumika says:

    Hi,

    Me & My husband both are working in the same company. We both have not claimed LTA last year so we both want to claim this financial year. But my company fellow told me, only one can claim LTA if husband and wife both are working in the same company.

    They are not able to show such clauses and we are also not able to find such clauses. But they are not accepting our declaration for LTA.

    I understand this is not claiming same exemption twice so we both can claim. I will take my parents on vacation and my husband will take his parents and we 6 will go at same place for a vacation at same time. Please tell me whether it is possible or not? and let me know any such clauses are there?

    Thanks & Regards,

  88. siva says:

    Hi,
    may i want to know the travel should be round trip only for claiming of LTA, am i right?

  89. Vishu says:

    I have performed the journey in December 2010 and submitted the bill on January 2011.
    Can I take exemption for block 2006 to 2009.
    It is necessaery to avail the benefit in December 2010(as specified in Tax law) (how you interpret the word avail instead the perform the jouery).
    Can you provide the relevant case law for the same.

  90. B.D.YADAV says:

    Dear Sir,

    Suppose that Empo.is no taxable salary from 2009-10( fY)
    and 2010-11 is taxable salary and Take the LTA 2010. and also take the 2008-09 and 2007-8, this case the LTA 2010-11 is taxable or exmption

    bdy

  91. jinde says:

    1) Whether LTA Advance has to be taken mandatorily to claim LTA benefit?

    2) IF LTA is paid in monthly salary for 12 months & can we claim the LTA benefit in year end? Will this allow the IT dept?

  92. David Raja says:

    I have not used LTA during 2006-2009, looking to travel in Feb 2011 – will my journey considered for 2006-2009 or 2010 to 2013. if i claim LTA ..

  93. truptesh says:

    In your example, suppose the employee recd Rs. 30000/- as LTA for FY 2009-10 but he did not undertake any journey till July 2010 and filed his ITR considering the entire amount of LTA as taxable. He go for journey in Oct. 2010. Now how he can claim exemption of that journey against the LTA received for FY 2009-10.

    I have one more query, in block of 2006-2009, suppose an employee is getting LTA every year. He go for a journey in Feb. 2007. Will that journey be considered for FY 2006-07 or FY 2007-2008? Further, suppose any employee has claimed exemption for one journey in block of 2006-2009. In FY 2009-10, he go for a journey in Sept. 2009 and another journey in Jan. 2010. In this case, he can claim exemption for journey undertaken in Sept 2009 for calender year 2009 in his ITR for FY 2009-10. Can he claim exemption for journey did in Jan. 2010 against LTA received for FY 2010-11 as it is a journey falling in calender year 2010 in block period 2010-13?

    rply pl

  94. Sreenivasulu Chedubhavi says:

    Sir,

    I Sreenivasulu chedubavi, working as finance manager in NGO. Our organisation have been giving one extra salary per year to staff it is treating as LTA and Medical allowance.
    As per LTA rule, only two trips in four years. How to cover the LTA for whole period 2010-13.

    Kindly help me in this matter.

    Thanks and regards

    Sreenivasulu
    9966530684

  95. GAURAV VERMA says:

    That was good…. can anybody provide me with the LTC Declaration form

  96. rd says:

    Hi ,

    If I travel on weekends and do not apply leave for travel am I entitled for LTA ?

    Please reply.

  97. Rajesh Agrawal says:

    Reply to Kumar :-

    You was entitled to claim 2 tax free journeys only upto Dec 2009.

    As the new block started from Jan 2010. Again you will be eligible for 2 tax free journeys upto Dec 2013.

  98. kumar says:

    Hi,

    This is Kamal, actually i joined new job on 1st dec 2008. Iam eligible for LTA of Rs.12000/PA, before that i have worked in some other company. In the slot of 2006-2009 i have not claimed any LTA can i claim now. Last year(2009)i have spend an amount of Rs. 20000 for the leave travel allownance.

    waiting for ur reply…….
    thanks

  99. Vishal Makkar says:

    Hi,

    I joined my first job on 13 November 2009. I am eligible for LTA of Rs. 18000 per year. I worked only for about 1.5 months in the last block 2006-2009. So am I eligible for an additional claim in this block i.e. 2010-2013?
    Please reply… Thanks

  100. hemendra says:

    i have not claimed LTA for 2006,2007,2008 and is it lapsed or can be recovered

  101. Suneet Kaul says:

    I am salary person and could not submit my IT return for 2009-10. However, my organisation deducted tax from my Income for 2009-10. Would it be possible for me to submit my tax for 2009-10 during current fiscal. Any penalty is there due to late submission of IT return.

  102. G N Semwal says:

    I have joined the organisation on 5th May’2009 and want to claim LTA of 2 yrs i.e. 2009-10 & 2010-11. Is LTA amount to be claimed would be exempted or not.

  103. surendar says:

    I have claimed 2010-11 LTA in 2010. But I havent claimed 2009 LTA till now. As you explained can I claim 2009 LTA in 2010.But in 2010 I have already claimed 2010-11 LTA.What shall I do?

  104. Nazim says:

    Can LTA give to the employees on monthly basis means total amt of LTA (yealy amt) distribute in 12 months and give to the employee on monthly basis. Is it right or wrong?

  105. ajay says:

    PLEASE COMMENT ON THE QUERY ASKED BY MR. ATUL GUPTA POSTED ON 03.05.2010 AS I HAVE THE SAME QUERY ALSO.

  106. ajay says:

    IF I MAKE THE PAYMENT FOR THE TRAVELLING OF MY CHILD AND MY CHILD IS KEEPING THE PROOF OF THE TRAVELLING, WILL MY CHILD CAN CLAIM FOR THE LTA FROM HIS SALARY

  107. ajay says:

    MY QUERY:
    IF AN EMPLOYEE TRAVEL TO ANY PLACE IN INDIA AND UTILISE HIS SICK LEAVE AND WEEKENDS FOR THE TRAVEL. WILL HE ENTITLED FOR LTA. HE DO NOT APPLY FOR LEAVE IN THE OFFICE FOR TRAVELLING.

    AJAY

  108. Sandhya says:

    Can I claim the exemption for the journey done in Jan 2010 by the LTA received during the Financial year 2010-2011?

  109. anjali says:

    what about the encashable LTA which some organisations follow and give the choice to the employee to either claim LTA or take encashment? what is the limit of such encashment?

  110. swajan says:

    I understand now no proof is required to claim LTA.

    Proof of travel not required for claiming LTA: Supreme Court

    Employers, while assessing the conveyance and leave & travel allowance (LTA) claims of their staff, are under no statutory obligation to collect supporting evidence and furnish them to tax authorities, the Supreme Court said on Wednesday.

    A bench comprising Justice SH Kapadia and Justice Aftab Alam said that assessee employers are under no statutory obligation to collect bills and details to prove that the employees had utilised the amounts obtained against these claims on travel and related expenses.

    According to prevailing rules, if claims on LTA and conveyance are not supported by journey bills, they would be taxed. For instance, on an LTA allowance of Rs 1 lakh, if documentary proof such as air tickets, taxi vouchers and other public transport bills are submitted only for Rs 50,000, then tax is applicable on the rest of the amount.

    Regardless of the amount an executive is entitled to as LTA, tax laws allow air tickets only in the domestic sector for the claim.

    The apex court order came in a plea by companies including Larsen &Toubro and ITI. In its defence, the revenue department had argued that assessee companies were under statutory obligation under Income Tax Act, 1961, and relevant rules, to collect documentary proof to show that their employee(s) had actually utilised the amount paid towards the leave travel concession and conveyance allowance.

    Rejecting the plea, the court in its order said: “The beneficiary of exemption under Section 10(5) (of the Income Tax Act) is an individual employee. There is no circular of Central Board of Direct Taxes (CBDT) requiring the employer under Section 192 to collect and examine the supporting evidence to the declaration to be submitted by an employee(s).”

  111. Loretta - Tax preparation expert says:

    This is still a good news thinking about how employees can benefit from Leave Travel Allowance. Thanks for writing about this.

  112. Rajesh Sharma says:

    Pls confirm from the FY 10-11 as per the budget LTA is allowable every year

  113. Atul Gupta says:

    In your example, suppose the employee recd Rs. 30000/- as LTA for FY 2009-10 but he did not undertake any journey till July 2010 and filed his ITR considering the entire amount of LTA as taxable. He go for journey in Oct. 2010. Now how he can claim exemption of that journey against the LTA received for FY 2009-10.

    I have one more query, in block of 2006-2009, suppose an employee is getting LTA every year. He go for a journey in Feb. 2007. Will that journey be considered for FY 2006-07 or FY 2007-2008? Further, suppose any employee has claimed exemption for one journey in block of 2006-2009. In FY 2009-10, he go for a journey in Sept. 2009 and another journey in Jan. 2010. In this case, he can claim exemption for journey undertaken in Sept 2009 for calender year 2009 in his ITR for FY 2009-10. Can he claim exemption for journey did in Jan. 2010 against LTA received for FY 2010-11 as it is a journey falling in calender year 2010 in block period 2010-13?

    Thanks & Regards

  114. Sameer Shroff says:

    hi,

    but from the FY 10-11 as per the budget LTA is allowable every year. can you cofirm the same?

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