Are you planning to claim leave travel allowance (LTA) in this year to get income tax exemption? Do you know how to claim leave travel allowance (LTA)? Generally employers provide LTA facility to their employees to get extra income tax benefit. The concept of LTA is quite simple and mostly known by people. But there are various scenarios and facts that you may not know about LTA. In this article we will raise such 22 questions to cover everything about leave travel allowance income tax rules.
Who can claim leave travel allowance (LTA)
As this facility is provided by employer, so every employee of that employer will get leave travel allowance benefit. In case your employer doesn’t have LTA under income tax benefit then you can’t claim the same.
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How much LTA one can claim max
Leave travel allowance limit is generally defined by employer as per employees CTC. It could be 25,000, 40,000 or more as per seniority of that employee.
How frequently one can claim LTA
LTA can be claimed 2 times in a block of 4 years. Means if you travel 2 times in a gap of 4 years you can claim LTA as per your eligible maximum limit.
What is the current block of leave travel allowance?
You are lucky :). The present LTA block is 2014-2017. Previous was from 2010-2013.
How a year is considered under LTA rule
In case of LTA a year is calculated from January 1 to December 31, not financial years (April 1 to March 31).
Under which Income Tax Act section LTA exemption comes?
The exemption comes under Section 10(5) of the Income Tax Act.
Can I claim multiple travels in one year?
No. Maximum one travel claim is permitted in a year under 4 year block.
Can I travel multiple places and claim leave travel allowance
As per LTA rule, the shortest route between the farthest place and your starting place of travel will be considered for LTA claim.
Who all can travel to get LTA benefit
You can consider travel cost of your direct family. Means you, your spouse and maximum 2 kids. In case you parents, sister and brother are also dependent on you then you can include them as well. Any other relative or your in-laws can’t be included to get leave travel allowance benefit.
I am not married yet. Can I claim travel expenses with my girlfriend?
No. As Income Tax Rules you can consider only your direct family. In that case your father, mother and any un-married brother or sister could be included.
As per rule max 2 kids allowed. If one had triplet?
In case initial delivery gave birth to twin or triplet it will be consider as one child only as per income tax rule.
Is it mandatory for me to travel to get LTA benefit
Off-course, you have to be there in that travel plan. Then only you can claim you leave travel allowance benefit. Any trip where you have not included yourself will not consider for LTA benefit.
Can I plan a Travel on week-end and claim leave travel allowance?
No. You have to be on official planned leave or vacation leave to claim LTA income tax benefit. Check with your employer with any mandatory leave rule.
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What do you means by travel cost under LTA?
Travel cost means only major transportation cost to travel from one place to another place. Your hotel accommodation, food bills can’t be claimed under LTA.
Types of transport allowed under LTA?
Under LTA claim only major travel expenses will be covered. These are explained below
- For Air travel only economy class travel is allowed
- In case of railway travel max AC first class ticket is allowed
- If Air and railway travel is not available in the route of travel then one can go for 1st class or deluxe mode of available transport
- Local city transport like auto or taxi travel bills are not allowed
Can I travel abroad and claim LTA?
No. One can only travel with India to get leave travel allowance income tax benefit.
We both are working. In that how can we claim leave travel allowance?
Yes. In that case you have to plan your travel accordingly. Individually each person will get 2 claims in a block of 4 years. But both can’t show the same travel as LTA claim. So you can plan a travel every year and in 4 year both can claim LTA 4 times (2 times each).
Can LTA be carry forwarded?
Yes. But there is a rule regarding that. E.g. If you have claimed only 1 travel in last LTA bracket year then it will be carry forwarded and it has to be claimed in the first year of next LTA bracket year. That means in that bracket year one can maximum claim 3 LTA claim.
My company allow me LTA on yearly basis. Not the total benefits at one go.
In that case you can accumulate them from next year onward and then claim as LTA rule.
I have changed my job and claimed 1 LTA in my last company
The rule for leave travel allowance will be same only. In case you have claimed 1 LTA in your last company, in the same bracket year you can claim the next LTA in the new company.
What if I have started my travel in last month of a LTA block year and then end in next year?
You can claim as per your travel start date. In this case you should claim LTA under last block year.
I have not at all traveled in the last block year. What will happen to my money?
If your employer deducts the LTA amount from your salary then at the end of block year you will get you money back after deducting income tax as per your limit.
Do you think this is enough about leave travel allowance? Did you claim your travel expenses in the last LTA block year? Do you have any more questions to ask about income tax rules related to LTA? Write a simple comment to share your feedback about this article. Don’t forget to share this article with your friends if you find this useful.