Leave travel Concession(LTC) provided in India is exempt upto some limits under Section 10
Important Points
- LTC means Leave travel Concession,hence travel expenses on personal leave is covered here (not official leave)
- When a person goes for travel,there are lots of expenses for Travel,sight seeing,hotel ,taxi etc. Only travelling expenditure is exempt,not other expenses paid by employer
- If LTC provided outside India,then it is fully taxable
- LTC is also sometimes called LTA (Leave travel allowance) Although it will be exempt only if bills are provided by employee
How to Calculate Amount Exempt
![](https://d1avenlh0i1xmr.cloudfront.net/18859758-8812-4fe2-a5ea-b7c332cd9e21/ltc-new.jpg)
Example
What is amount exempt in following cases?
Travel by | Travel to | Amount Exempt |
Air | Agra | |
Train | Agra | |
Bus | Agra | |
Own Car | Agra | |
Air | Ladakh | |
Train | Ladakh | |
Bus | Ladakh | |
Own Car | Ladakh | |
Air | Andaman and Nicobar | |
Ship | Andaman and Nicobar |
Travel by | Travel to | Amount Exempt |
Air | Agra | Economy Class of Air India |
Train | Agra | I Class AC of Train |
Bus | Agra | I Class AC of Train |
Own Car | Agra | I Class AC of Train |
Air | Ladakh | Economy Class of Air India |
Train | Ladakh | Delux Roadways Bus fare |
Bus | Ladakh | Delux Roadways Bus fare |
Own Car | Ladakh | Delux Roadways Bus fare |
Air | Andaman and Nicobar | Economy Class of Air India |
Ship | Andaman and Nicobar | No of km x I Class AC Fare per km |
How many times LTA can be claimed?
LTA can be claimed only twice in a block of 4 years
Current Block is 2014-17
(We follow calender year,not financial year)
Expenses of Family Covered
- Family means
- Self
- Spouse
- 2 Children
- Dependent Parents
- Dependent Brothers and Sisters