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Lta Guideline

The LTA exemption from income tax has several conditions: 1) The amount must be spent on transportation for the employee and dependents traveling within India by the shortest route. Expenses for lodging, food, or taxis beyond the destination are not exempted. 2) The maximum exemption is the economy airfare or first class railfare for the shortest route. 3) Proof of travel such as tickets or boarding passes must be submitted to claim the exemption.

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273 views2 pages

Lta Guideline

The LTA exemption from income tax has several conditions: 1) The amount must be spent on transportation for the employee and dependents traveling within India by the shortest route. Expenses for lodging, food, or taxis beyond the destination are not exempted. 2) The maximum exemption is the economy airfare or first class railfare for the shortest route. 3) Proof of travel such as tickets or boarding passes must be submitted to claim the exemption.

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venkatesh8919ch
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➢ LTA Exemption

The LTA / LTC that you get is fully exempted from income tax provided it satisfies certain
conditions. Here are the conditions:
The amount is actually spent on travelling:

you have to actually spend this amount on transportation. The spending can be for you and
your family members (dependent members), but you have to be one of the travelers.
Here, family means spouse and children (including adopted children and stepchildren). Parents,
brothers and sisters are also included if they are dependent on you.
It has to be for transportation
• The amount has to be spent on transportation – Either Air or Rail.
• Any amount spent for lodging and boarding is not considered. Thus, food related
expenses and hotel expenses are not exempted from income tax.
• Also, this exemption is for primary travel between your city of stay and your destination.
Other travel expenses like taxi / cab fare can be claimed only if the places travelled
have no access by flights or trains.
• For Round trips like Kolkata – Mumbai – Delhi – Kolkata the farthest point from starting
point will be considered as destination and current train fare for that distance will be
assumed for calculation of exemption.
Travel within India
The travel has to be within India – foreign travel is not considered. The government wants to
boost tourism within India, not international travel!
Shortest Distance and Cap on claim amount
The amount exempted would be for travelling to your destination by the shortest route,
depending on the mode of your travel.
If you travel by air, the maximum amount that can be claimed as exemption is the economy
class air fare to your destination by the shortest route.
If you travel by rail the maximum amount that can be claimed as exemption is the air
conditioned first class (AC I Class) rail fare to your destination by the shortest route.
Proof of travel
Proof of travel needs to be preserved and presented to claim this exemption. The tickets are
considered valid proof for train travel and in case of travel by air boarding passes are also
required. Boarding passes are mandatory.
The proofs of travel should be provided with a covering letter (attached separately).
Important Points:
• An employee can get LTA exemption twice in a block of 4 years.
• Though you can claim 2 journeys in a block of 4 Years, you can claim LTA benefit just
once in a year. You cannot claim both the journeys in one year
• C urrent Block i s 2022-2025 .These block are calendar years a nd not financial Years.
• You can carry forward your LTA to next block to the extent of one LTA.
• In order to avail LTA exemption, an employee has to avail a minimum of 3 days of his PL
balance.

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