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Save Tax – Claim Leave Travel Allowance

Published On 14 Jun 2010 By . Under: Useful Tips. Tags: ,   
Have had a hectic year so far. Got a promotion and desperate to take a break. Then may be you shouldnt wait any longer for it. It might not just relax your nerves but also add to your Income Tax Allowance.

What is LTA or Leave Travel Allowance?

Leave Travel Allowance (LTA) is basically defined as the cost of travel granted to employees to travel anywhere in India, while on leave from work. The amount of exemption depends upon the mode of travel, and it is allowed only towards the travel fare, and not for boarding and lodging.


What all can be claimed under LTA?

As we have stated above, LTA can only be claimed towards transportation expenses. Boading and food expenses cannot be claimed under Leave Travel Allowance. Also as per LTA rules The travel has to be within India – foreign travel is not considered.

LTA Block Years

LTA can be claimed only twice in a block of 4 calendar years. The current lta block year is from 2010 – 2013.

What if you are not able to claim LTA during this period?

Say you could not claim any or only once, tax exemption on LTA in the previous block (2006-09). Then according to leave travel allowance rules India, you can carry forward one journey to the next block (2010-13) and claim it in the first calendar year (2010). So this way you are eligible for three tax exemptions on LTA in the block 2010-13.

Also as per LTA rules if you are claiming LTA in alternate years, then the entitlement gets added. This means that say you are entitled to an LTA of Rs.15,000 per year and do not utilize it for the the first year, in that case it is carried forward to the next year. In the second year you can claim the entire amount of Rs 30,000 as tax exempt .

Claiming LTA Exemption – Is it necessary to submit bills to employer to claim Leave Travel Allowance?

While clailming your LTA exemption, you are not required to submit the bills to your employer. However even though your employer is no longer obligated to collect and examine LTA related proofs, you still need to keep a record of bills evidencing the fact that you did go on the trip. Also in certain cases employer can still ask for proofs to validate the claim.


What all and which family members are covered under LTA?

If you are travelling with your spouse or childer (max 2) or parents or siblings you can claim LTA for their travel also. Also the travel cost incurred while travelling within India only is eligible for exemption.

What is the minimum number of days leave required to claim LTA exemption?

As per India's Leave Travel Allowance rules, there is no limit on the minimum or the maximum number of days of travel to claim LTA. However in order to make sure that your LTA exemption claim is hassle free it is advisable that a minimum of three days of leave from work be taken (this does not include sick leave or holidays or weekends).


Calculating LTA exemption that can be claimed by you!

LTA claim is limited to the expense incurred on AC 1st class rail fare for the shortest route between the point of origin and destination. This means that say you undertook a journey from Delhi to Mumbai to Chennai and back to Delhi. The lta exemption can only be claimed for the 1st class AC rail fare between Delhi (origin point) and Chennai (the farthest point) and back.

Claim_LTA

Still have some questions that have not been answered? Drop in a comment and let us know.

Also dont miss out : Funny thoughts about LTA.

  • Pintobrenda

    Can we use our personal vehicle in claiming LTA

    • Anonymous

      Hi Reader,
      You have asked a very interesting question. Ideally amount spent on taxi fare or rail or air fare can only be claimed. The fuel expense incurred by you when using your own vehicle cannot be reimbursed. We are looking into this question in more detail and will get back to you shortly.

  • Ak02783

    If i travel by my own veichle will petrol bills come in LTA?

    • Anonymous

      Please note that petrol bills are not considered under LTA.

  • Anonymous

    Dear Reader,

    Taxi fares can be claimed for LTA.

    You can find some very useful details on LTA here : http://www.themoneyquest.com/2011/02/how-to-claim-ltc-lta-tax-exemption.html

  • Nitin

    Hi,

    We cannot clain LTA if we travel on a weekend right?

    Regards,
    Nitin

    • Anonymous

      Yes Nitin, LTA cannot be claimed on travel on weekend alone. You should ideally be on leave from office for a minimum of three days.

  • Binualan

    what is maximum amount can be claimed for LTA.  or is there any slab for this?  i mean to say what is the limit for LTA???

    • Anonymous

      Dear Binualan,

      The maximum amount that can be claimed for LTA is defined in your Salary structure or Cost to Company.
      There is no fixed limit defined as per Income Tax Laws.

  • Amit Dhiman

    Hi,

    If I am taking LTA on monthly basis than it will be tax free or taxable on year end ?

    Amit Dhiman

    • Anonymous

      Hi Amit,

      Since you are claiming LTA on monthly basis, the amount that you get should have been computer after taking into account your Income Tax slab. That means, the amount you get should already factor in Income Tax Deduction.

      We advise you to check with your employer for more details.

  • Anonymous

    Dear Reader,

    LTA claim is limited to the expense incurred on AC 1st class rail fare for the shortest route between the point of origin and destination. So you would be eligible to avail tax benefit on amount of Rs 14000 only.

  • Ramaniyadavilli

    please tell the lta rules for going to andaman

    • Anonymous

      Dear
      Reader,

      LTA rules for
      travelling to Andaman are same as LTA rules for travelling within the
      country.

  • Jadav Bheda

    Can I claim two LTAs withing same financial year?

    • InsureInvest

      Dear
      Reader,

       

      No,
      you cannot claim more than one LTA in a financial year.

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