Leave Travel Allowance (LTA) / Leave Travel Concession (LTC)

What is Leave Travel Allowance?

Want to know about the Meaning of Leave Travel Allowance? The LTA full form is leave travel allowance, and it is given to employees as a concession of travel expenses, mostly on a vacation. The LTA is given either when the employee takes the leave or after their retirement. It can also be given after the termination of their service.

The LTC full form is Leave Travel Concession. If you are wondering what is leave travel concession, then it is just another term for LTA. The leave travel allowance exemption limit is the actual travel expenses or the specified expenses, whichever is less.

Eligibility Criteria for LTA Exemption

The leave travel allowance exemption under section 10 of the Income Tax Act has the eligibility criteria for the expenses:

• For Air Travel: The leave travel allowance rules for air travel are that exemption can only be done on the economy class fare of Air India.
• For Rail Travel: The exemption is allowed on the 1st class A/C fare on trains.
• Other modes of transport: If there are no rail routes for the journey, then you can claim the 1st A/C fare of the bus for exemption.
• Unrecognised modes of transport: You can claim the 1st class of A/C rail fare for a similar distance.

What are the Conditions for Claiming LTA?

Only individuals can claim LTA, whether they are resident or non-resident, for the travel costs for their family members or themselves, such as spouse, children, dependent siblings, parents, etc. Here are the requirements for claiming LTA:

• Leave travel allowance exemption is only considered on domestic travels, that is, travel within India only.
• To claim the concession, you have to provide a valid proof of your travel.
• It can only be claimed if your employer has granted it.
• The travel exemption is available only for the employee or their close family.
• LTA can only be claimed if the employee has two children; in case of twins, after the first child, then LTA can be claimed.