{"id":5714,"date":"2019-09-11T07:30:05","date_gmt":"2019-09-11T07:30:05","guid":{"rendered":"https:\/\/labourlawadvisor.in\/blog\/?p=5714"},"modified":"2024-01-24T09:41:22","modified_gmt":"2024-01-24T09:41:22","slug":"leave-travel-allowance-lta-claim-income-tax-deduction","status":"publish","type":"post","link":"https:\/\/labourlawadvisor.in\/blog\/leave-travel-allowance-lta-claim-income-tax-deduction\/","title":{"rendered":"Leave Travel Allowance (LTA) | How To Claim Income Tax Deduction?"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-662ca43b202c5\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-662ca43b202c5\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/labourlawadvisor.in\/blog\/leave-travel-allowance-lta-claim-income-tax-deduction\/#What_is_Leave_Travel_Allowance\" title=\"What is Leave Travel Allowance?\">What is Leave Travel Allowance?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/labourlawadvisor.in\/blog\/leave-travel-allowance-lta-claim-income-tax-deduction\/#What_are_the_conditions_needed_for_claiming_Leave_Travel_Allowance\" title=\"What are the conditions needed for claiming Leave Travel Allowance?\">What are the conditions needed for claiming Leave Travel Allowance?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/labourlawadvisor.in\/blog\/leave-travel-allowance-lta-claim-income-tax-deduction\/#What_travels_are_eligible_for_LTA_exemption\" title=\"What travels are eligible for LTA exemption?\">What travels are eligible for LTA exemption?<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/labourlawadvisor.in\/blog\/leave-travel-allowance-lta-claim-income-tax-deduction\/#Case_Study_1\" title=\"Case Study 1\">Case Study 1<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/labourlawadvisor.in\/blog\/leave-travel-allowance-lta-claim-income-tax-deduction\/#Case_Study_2\" title=\"Case Study 2\">Case Study 2<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/labourlawadvisor.in\/blog\/leave-travel-allowance-lta-claim-income-tax-deduction\/#Which_travel_conveyance_are_covered_under_LTA\" title=\"Which travel conveyance are covered under LTA?\">Which travel conveyance are covered under LTA?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/labourlawadvisor.in\/blog\/leave-travel-allowance-lta-claim-income-tax-deduction\/#Can_Leave_Travel_allowance_be_claimed_multiple_times_in_a_year\" title=\"Can Leave Travel allowance be claimed multiple times in a year?\">Can Leave Travel allowance be claimed multiple times in a year?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/labourlawadvisor.in\/blog\/leave-travel-allowance-lta-claim-income-tax-deduction\/#How_to_claim_LTA\" title=\"How to claim LTA?\">How to claim LTA?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/labourlawadvisor.in\/blog\/leave-travel-allowance-lta-claim-income-tax-deduction\/#Tips_tricks_for_claiming_LTA\" title=\"Tips &amp; tricks for claiming LTA\">Tips &amp; tricks for claiming LTA<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_Leave_Travel_Allowance\"><\/span>What is Leave Travel Allowance?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Leave Travel Allowance, also knows as LTA, is a type of allowance which the employer provides to employees. This allowance covers the travel expenses for the employee when he is on leave from work. Furthermore, under Section 10(5) of the Income Tax Act, this allowance is exempt for income tax. This is because the Leave Travel allowance is not considered as a part of the employee&#8217;s net income for the year.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_conditions_needed_for_claiming_Leave_Travel_Allowance\"><\/span>What are the conditions needed for claiming Leave Travel Allowance?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>One has to be actually travelling to claim this benefit.<\/li><li>Only travels in India are eligible for this benefit. International travels are ineligible and cannot be used to claim this allowance.<\/li><li>The travel allowance is applicable for the employee as well as his family members. The following members are eligible for travel allowance under LTA:<ul><li>Spouse<\/li><li>Children, but a maximum of two<\/li><li>Wholly or mainly dependent parents<\/li><li>Dependent siblings<\/li><\/ul><\/li><\/ul>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"576\" height=\"1024\" src=\"https:\/\/labourlawadvisor.in\/blog\/wp-content\/uploads\/2019\/08\/Vertical-Thumbnail-9-576x1024.jpg\" alt=\"\" class=\"wp-image-11684\" srcset=\"https:\/\/labourlawadvisor.in\/blog\/wp-content\/uploads\/2019\/08\/Vertical-Thumbnail-9-576x1024.jpg 576w, https:\/\/labourlawadvisor.in\/blog\/wp-content\/uploads\/2019\/08\/Vertical-Thumbnail-9-169x300.jpg 169w, https:\/\/labourlawadvisor.in\/blog\/wp-content\/uploads\/2019\/08\/Vertical-Thumbnail-9-768x1365.jpg 768w, https:\/\/labourlawadvisor.in\/blog\/wp-content\/uploads\/2019\/08\/Vertical-Thumbnail-9-864x1536.jpg 864w, https:\/\/labourlawadvisor.in\/blog\/wp-content\/uploads\/2019\/08\/Vertical-Thumbnail-9-150x267.jpg 150w, https:\/\/labourlawadvisor.in\/blog\/wp-content\/uploads\/2019\/08\/Vertical-Thumbnail-9-300x533.jpg 300w, https:\/\/labourlawadvisor.in\/blog\/wp-content\/uploads\/2019\/08\/Vertical-Thumbnail-9-696x1237.jpg 696w, https:\/\/labourlawadvisor.in\/blog\/wp-content\/uploads\/2019\/08\/Vertical-Thumbnail-9-1068x1899.jpg 1068w, https:\/\/labourlawadvisor.in\/blog\/wp-content\/uploads\/2019\/08\/Vertical-Thumbnail-9-236x420.jpg 236w, https:\/\/labourlawadvisor.in\/blog\/wp-content\/uploads\/2019\/08\/Vertical-Thumbnail-9.jpg 1080w\" sizes=\"(max-width: 576px) 100vw, 576px\" \/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_travels_are_eligible_for_LTA_exemption\"><\/span>What travels are eligible for LTA exemption?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>LTA is only applicable <g class=\"gr_ gr_12 gr-alert gr_gramm gr_inline_cards gr_run_anim Grammar multiReplace\" id=\"12\" data-gr-id=\"12\">for<\/g> the actual travelling cost. This is the cost of air, railway or bus fare which the employee incurs while travelling. although, the employee has to submit the fare receipts as actual proof. <\/li><li>The expenses such as local conveyance usage, sightseeing, lodging, food, shopping, etc, are not applicable for LTA exemption. <\/li><li>The exemption is also limited to how much LTA the employer can actually provide. To understand this point, lets look at the two case studies below.<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Case_Study_1\"><\/span>Case Study 1<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>LTA provided by employer = Rs 40,000<br>Expenses incurred by employee = Rs 30,000<br>Thus, tax exemption for employee = Rs 30,000<\/p>\n\n\n\n<p>Hence, if the employer provides Rs 40k for LTA but the employee only uses Rs 30k out of it, then only that Rs 30k is exempted from taxation and the rest is added to the employee&#8217;s taxable salary.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Case_Study_2\"><\/span>Case Study 2<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>LTA provided by employer = Rs 40,000<br>Expenses incurred by employee = Rs 50,000<br>Thus, tax exemption for employee = Rs 40,000<\/p>\n\n\n\n<p>In this case, since the employer provides a benefit of up to Rs 40k only, the employer will get LTA exemption also for Rs 40k only. The remaining amount of Rs 10k will not comber under LTA exemption and employer will have to pay it himself.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Which_travel_conveyance_are_covered_under_LTA\"><\/span>Which travel conveyance are covered under LTA?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>For Air travel, only the economy class fares from Air India airlines can get LTA exemption. Additionally, only the shortest routes available are exempt. So one cannot expect to take detours to multiple locations before reaching their final destination.<\/li><li>For Railway travel, there is a restriction for up to first-class fares. Here also, only the shortest possible route is exempt.<\/li><li>For Public Bus, fares up to deluxe bus are exempt. <\/li><li>Additionally, multiple destinations are not covered under LTA, via any travel mode. Only the shortest route from origin to the destination is exempt. <\/li><\/ul>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" loading=\"lazy\" width=\"849\" height=\"427\" src=\"https:\/\/labourlawadvisor.in\/blog\/wp-content\/uploads\/2019\/09\/Untitled-18.png\" alt=\"leave travel allowance\" class=\"wp-image-5719\" srcset=\"https:\/\/labourlawadvisor.in\/blog\/wp-content\/uploads\/2019\/09\/Untitled-18.png 849w, https:\/\/labourlawadvisor.in\/blog\/wp-content\/uploads\/2019\/09\/Untitled-18-300x151.png 300w, https:\/\/labourlawadvisor.in\/blog\/wp-content\/uploads\/2019\/09\/Untitled-18-768x386.png 768w\" sizes=\"(max-width: 849px) 100vw, 849px\" \/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Can_Leave_Travel_allowance_be_claimed_multiple_times_in_a_year\"><\/span>Can Leave Travel allowance be claimed multiple times in a year?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>LTA exemption is available for only two travels within a duration of four years.<\/li><li>The current applicable period is between January 2018 to December 2021. Similarly, the last applicable period was January 2014 to December 2017. <\/li><li>Furthermore, if an employee does not claim one or any of his LTAs in a given period of four years then one LTA is carried over to the next block of four years.<\/li><li>But this carried over LTA has to be used within the first year of the four years.<\/li><\/ul>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" loading=\"lazy\" width=\"689\" height=\"388\" src=\"https:\/\/labourlawadvisor.in\/blog\/wp-content\/uploads\/2019\/09\/Screenshot_2019-09-10-Leave-Travel-Allowance-LTA-.png\" alt=\"leave travel allowance\" class=\"wp-image-5723\" srcset=\"https:\/\/labourlawadvisor.in\/blog\/wp-content\/uploads\/2019\/09\/Screenshot_2019-09-10-Leave-Travel-Allowance-LTA-.png 689w, https:\/\/labourlawadvisor.in\/blog\/wp-content\/uploads\/2019\/09\/Screenshot_2019-09-10-Leave-Travel-Allowance-LTA--300x169.png 300w\" sizes=\"(max-width: 689px) 100vw, 689px\" \/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_claim_LTA\"><\/span>How to claim LTA?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>LTA benefits cannot be claimed in your ITR filing. They can only be claimed through your employer.<\/li><li>One needs to submit sufficient proof of travel to the employer by a given date. This could be in the form of the fare ticker or boarding pass or invoice of travel agent.<\/li><li>Some organizations are very particular about the definition of Leave Travel Allowance. Hence, they only give LTA benefit when the employee takes an official leave and travels during that leave period. For travels during official holidays and weekends, they do not accept LTA claim benefits.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Tips_tricks_for_claiming_LTA\"><\/span>Tips &amp; tricks for claiming LTA<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>If one does not go on any travels then the LTA benefit becomes part of their taxable salary. Hence it is important to utilize the LTA properly.<\/li><li>By definition itself, LTA is a travel reimbursement and cannot be taken as part of the employee&#8217;s wages.<\/li><li>Since LTA is not a part of wages, PF and ESI contributions cannot be <g class=\"gr_ gr_24 gr-alert gr_spell gr_inline_cards gr_run_anim ContextualSpelling\" id=\"24\" data-gr-id=\"24\">applicable<\/g> to it.<\/li><li>Some employees try to cheat their employer by booking refundable tickets which they later cancel and also take the LTA benefit for it. Some employees may also photoshop fake travel tickets. These are not recommended.<\/li><\/ul>\n\n\n\n<p><\/p>\n\n\n\n<p>Don&#8217;t forget to watch our video on this topic below!<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"youtube-embed\" data-video_id=\"BBuiTnB3ihk\"><iframe loading=\"lazy\" title=\"LTA: Leave Travel Allowance |Calculation &amp; income tax exemption\" width=\"696\" height=\"392\" src=\"https:\/\/www.youtube.com\/embed\/BBuiTnB3ihk?feature=oembed&#038;enablejsapi=1\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><\/iframe><\/div>\n<\/div><\/figure>\n\n\n\n<p>Also read: <a href=\"https:\/\/labourlawadvisor.in\/blog\/employer-check-service-history-uan-pf\/\">Can Employer Check Your Service History via UAN Or PF Number?<\/a><\/p>\n\n\n\n<p>Join the LLA telegram group for frequent updates and documents.       <br>Download the telegram group and search \u2018Labour Law Advisor\u2019 or follow the link \u2013 <a rel=\"noreferrer noopener\" href=\"http:\/\/t.me\/JoinLLA\" target=\"_blank\">t.me\/JoinLLA<br><\/a>It\u2019s FREE!        <br><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is Leave Travel Allowance? Leave Travel Allowance, also knows as LTA, is a type of allowance which the employer provides to employees. This allowance covers the travel expenses for the employee when he is on leave from work. Furthermore, under Section 10(5) of the Income Tax Act, this allowance is exempt for income tax. [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":11683,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[2262,2260,2243,2247],"tags":[446,444,445],"_links":{"self":[{"href":"https:\/\/labourlawadvisor.in\/blog\/wp-json\/wp\/v2\/posts\/5714"}],"collection":[{"href":"https:\/\/labourlawadvisor.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/labourlawadvisor.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/labourlawadvisor.in\/blog\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/labourlawadvisor.in\/blog\/wp-json\/wp\/v2\/comments?post=5714"}],"version-history":[{"count":2,"href":"https:\/\/labourlawadvisor.in\/blog\/wp-json\/wp\/v2\/posts\/5714\/revisions"}],"predecessor-version":[{"id":15713,"href":"https:\/\/labourlawadvisor.in\/blog\/wp-json\/wp\/v2\/posts\/5714\/revisions\/15713"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/labourlawadvisor.in\/blog\/wp-json\/wp\/v2\/media\/11683"}],"wp:attachment":[{"href":"https:\/\/labourlawadvisor.in\/blog\/wp-json\/wp\/v2\/media?parent=5714"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/labourlawadvisor.in\/blog\/wp-json\/wp\/v2\/categories?post=5714"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/labourlawadvisor.in\/blog\/wp-json\/wp\/v2\/tags?post=5714"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}