Leave Travel Allowance: Deadline to Claim for the Current LTA Block

The Leave Travel Allowance (LTA) helps salaried employees save on taxes by allowing them to claim deductions on travel expenses. Employees can get reimbursement for travel costs when they go on leave, including expenses for public transport like trains and flights. However, the reimbursement amount depends on the actual travel expenses and the limits set by the employer or tax rules.

Who is eligible to claim LTA?

LTA or Leave Travel Concession is a part of an employee’s salary that helps to cover travel expenses when they take leave.

Employee can claim an LTA deduction if their company provides it as part of their salary. Employees who get LTA as part of their pay can claim a travel expense exemption under Section 10(5) of the Income-tax Act, 1961. This exemption covers travel expenses for the employee, their spouse, and their children while on leave. Additionally, parents, brothers, and sisters may also be covered if they fully or mostly depend on the employee.

LTA is tax-free in some cases under Section 10(5) of the Income Tax Act, 1961

What is the deadline to block LTA?

Taxpayers can claim LTA for only two trips in a four-year period. The current block period is from January 1, 2022, to December 31, 2025. This means the last date to use LTA for this block is December 31, 2025.

Exemption limit of LTA

If you are eligible for LTA, you must travel and submit the original travel documents to your employer to get the reimbursement. If you did not travel during your leave, you cannot claim this benefit. The LTA only covers travel expenses and does not include costs for hotel stays, food, or other expenses. Also, travel between the airport and the hotel is not covered, and local travel within the city is not allowed under the LTA.

Can you claim LTA for both Indian and foreign trips?

LTA exemption applies only to travel within India. It does not cover international trips.

To claim LTA, an employee must submit the following documents:

1. Original travel tickets, such as bus or train tickets.
2. If traveling to a place without train or air options, original bills from a car rental company (if a car was hired).
3. For air travel, flight tickets and boarding passes.
4. Bank, credit card, debit card, or wallet statements showing the payment for the travel.