LTA (Leave Travel Allowance) Exemption under Section 10(5)
LTA covers actual travel fare (economy air, first-class AC rail, or bus) for employee + spouse + up to 2 children within India. Current block: 2022–2025. Only old regime. Foreign travel not eligible.
- Twice per block of 4 years (current 2022–2025)
- Actual travel fare only — not hotel or food
- Family: spouse, 2 children, dependent parents/siblings
- Shortest route economy airfare / rail 1st AC / bus fare
- Only within India; foreign travel not eligible
Definition
LTA Exemption
What is LTA Exemption?
LTA covers actual travel fare (economy air, first-class AC rail, or bus) for employee + spouse + up to 2 children within India. Current block: 2022–2025. Only old regime. Foreign travel not eligible.
Key rules to remember
- Twice per block of 4 years (current 2022–2025)
- Actual travel fare only — not hotel or food
- Family: spouse, 2 children, dependent parents/siblings
- Shortest route economy airfare / rail 1st AC / bus fare
- Only within India; foreign travel not eligible
Worked example
Employee claims LTA ₹60k for Delhi–Kerala family trip: air tickets ₹52k, hotel ₹28k. Exempt = ₹52k (only fare). Balance ₹8k taxable as salary.
Which ITR form applies
- ITR-1 (Sahaj) — Up to ₹50 lakh total income
- ITR-2 — No upper limit
Ready to file with CA-led accuracy?
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Frequently asked questions
Frequently asked questions
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