Tax topic · deduction

    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.

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    Key takeaways
    • 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

    LTA exemption under Section 10(5) covers travel expenses for employee and family within India, restricted to twice in a block of four calendar years.

    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.

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    FAQs

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    Last Updated
    15 September 2026

    Content refreshed against the latest CBIC / CBDT / MCA notifications and portal changes.

    Reviewed by Chartered Accountant
    CA Ravi Sharma

    Chartered Accountant · ICAI Member · 12+ years in Indian tax & compliance

    Update History
    1. 15 September 2026
      Reviewed rates, forms and portal workflow for LTA Exemption. Verified against latest CBIC/CBDT notifications.
    2. 10 January 2026
      Refreshed FAQ set, added new penalty examples and jurisdiction notes.
    3. 05 October 2025
      Structural rewrite for EEAT — added expert commentary, playbooks and process timeline.