ITR Filing: Claiming Leave Travel Allowance Without Form 16; Know How?

Leave Travel Allowance (LTA) is an allowance included in the salary package of employees. It is a tax benefit that allows employees to claim tax exemption on the travel costs of themselves and their immediate family members. If your employer did not claim an exemption from LTA for any reason, you may claim it in the ITR directly. However, you would have to retain the required documents and comply with taxation regulations so as not to be penalized.

Who is entitled to claim LTA?

Leave Travel Allowance (LTA) is a part of salary allowance that is exempt under Section 10(5) of the Income Tax Act. It only considers the actual travel expenses for domestic trips and does not cover the cost of staying at a hotel, sightseeing, or meals.

How to claim LTA without Form 16?

• In the ITR form, report your Leave Travel Allowance (LTA) under the allowances section in the salary details.
• Claim your LTA exemption separately under Section 10(5) of the Income Tax Act.
  
• Keep travel tickets, boarding passes, and payment receipts as proof, since the tax department may verify your claim.
  

Important Rules to Keep in Mind

• You can claim LTA only twice in four years. If you don’t use it, one claim can be carried forward to the next block.
• LTA only covers domestic trips. If you travel abroad, those expenses won’t be eligible for exemption.
  
• The Income Tax Department actively supervises false LTA claims. If you submit incorrect information or invalid documents, you may face tax scrutiny, penalties, or even legal consequences.
  

It should be noted that employees can only claim the LTA exemption under the old tax regime. Salaried individuals who are selecting the new tax regime under Section 115BAC are not eligible to claim this exemption.