Leave Travel Allowance (LTA) is a component of one’s gross salary. If you take leave from office and travel, you can claim LTA amount to the extent used for the journey without it being subject to taxation. If there is any portion of LTA left unclaimed, that amount will be included in your income tax computation.
You can claim LTA twice in a block of 4 calendar years. The current block is 2014-2017 which means you can claim twice between 2014 to 2017.
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LTA Rules –
- To claim the tax deduction, you have to travel with or without family to any place in India taking leave of work. A Family includes parents, spouse, children (maximum of 2 if they are born after October 1998). You can claim for siblings if they are dependent on you.
- You can claim the cost of travel only for the trip. Amount paid towards accommodation, food etc. cannot be claimed
- Your travel by road, rail or air to any destination in India can be covered under LTA. The shortest route will be covered. If you are travelling to different places, you can claim for the journey up to the last destination.
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Leave Travel Allowance you can claim
- You can claim LTA tax exemption by submitting the actual bills with a written declaration. In some cases a written declaration that the amount stated has been used for leave travel is allowed though it is best to submit bills. Sometimes the IT department might want to check the original bills, tickets, boarding passes etc. So it is better to submit the originals and keep a copy of the same.
- If you did not submit any proof or declaration of travel, you will receive LTA as part of your salary and it will be taxed as per the tax slab you fall under.
- If there are two or more salaried persons in a family, only one of them can claim LTA for one travel. For example, if the husband and wife both earn a salary, they should submit different bills/tickets to claim the exemption.
- If in the block 2014-2017, you claimed LTA once, the second journey can be carried forward to the next year i.e. 2018 and claim exemption for the same. Please note you can carry it forward to the next year ONLY and not the next block.
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Some exclusions to keep note of –
- Overseas travel cannot be considered for LTA claims
- If your dependent family travels without you, you cannot claim LTA.
- The travel dates should be during working days and the employee should have a record of leave.
- LTA claim can be made only once in a year even if you have not exhausted the limit.
LTA Tax Exemption Limit
LTA is a component of your salary that you can use to get some tax exemption. The amount depends on the organization policy and you need to take leave aligned with organizational policies and your work.
This article is written by our “thought leader” Vidya.
Must share if your organisation allow you to claim LTA & are their any limits. Also, share your experience & tips that can be useful for other readers.
Thanks Vidya and Hemant for the details.
Please answer below queries:
1) If an employee not declared LTA but availed Leave and travelled, can he still submit proofs / claim for LTA during Investment proof submission period (end of the year)?
2) Can employee use the full amount reserved (eg. 60K) during 1st trip itself instead of waiting for second trip and claim bills of 1st trip itself?
3) If employee is declared LTA but not availed / claimed this component, when does he gets this amount back? Is it every financial year or after the current block i.e. 2014-2017?
Hi sir, Is there any limit on minimum/maximum no of days to be on leave? Also can we include casual leaves or we should use only Paid Leaves. Pl. clarify.
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