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
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 |
View answer
| 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