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Leave travel Concession(LTC) provided in India is exempt upto some limits  under Section 10

  

Leave travel Concession (,LTC) - Taxability of Perquisites

 

 

Important Points

  1. LTC means Leave travel Concession,hence travel expenses on personal leave is covered here (not official leave)
  2. 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
  3. If LTC provided outside India,then it is fully taxable
  4. 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

 

 

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  

-a-

 

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

-ea-

 

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
  1. Income Tax
  2. Income from Salaries
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About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 6 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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