How much Leave Travelling Allowances is tax exempted?


As the name itself suggests, it is an exemption for allowance/assistance received by the employee from his employer for traveling on leave. Though it sounds simple, many factors need to be kept in mind before planning the travel for the purpose of claiming an LTA exemption. 

Income tax provision has laid down rules with respect to claiming exemption of LTA.

How Much:

An LTA exemption is available for only performing 2 journeys in a block of 4 calendar years.


1. Only domestic travel is considered for exemption i,e. travel within India, No international travel be covered under LTA.

2. The exemption is available only on the actual traveling cost., the air, rail, or bus fare incurred by the employee. No expenses such as local conveyance, sightseeing, hotel accommodation, food, etc., are eligible for this exemption. The exemption is also limited to LTA provided by the employer.

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