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Yogi Zone

Useful articles for your finance management by our team of experts

Top 10 Leave Travel Allowance (LTA) Exemption FAQ’s

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lta exemptionLeave Travel Allowance (LTA) is a common form of tax exemption given to the employees by most employers. Though it is quite simple, it often brings about a lot of questions among those claiming exemption on it. In this article, we will try to answer the 10 most (not in any order) commonly asked questions on LTA.

1) When can we claim LTA?

Tax exemption on LTA can only be claimed if you have applied for leave from your company for travel and if you actual make a journey.

2) What does LTA cover?

LTA covers only the cost of travel for the trip. The hotel accommodation, food, etc cannot be claimed for exemption as part of LTA.

3) Whom does it cover?

LTA exemption covers you and your family. Family includes spouse, parents, siblings, and children. Cost of other relatives cannot be claimed here.

4) How many times can we claim LTA?

LTA can be claimed twice in a block. The blocks are decided by the govt. They are 2010-2013, 2014-2017 and so on.

5) What type of transport does LTA cover?

LTA can be claimed for travel through rail, air or any other public transport. However, keep in handy the proof of travel as it may be needed by the employer.

6) Is International travel permitted?

No, LTA covers only domestic travel.

7) What is the maximum limit on LTA exemption?

LTA exemption is limited to the amount of LTA paid to the employee as part of the CTC. One cannot claim exemption beyond the actual LTA amount being provided.

8) Can both husband and wife claim LTA?

Yes, both the spouses can claim the exemption on LTA from their employers. However, both of them cannot claim for the same journey.

9) Can we carry forward LTA?

Yes. In case you have only claimed LTA for one journey in a block, you can make another journey in the first year of the next block and claim it. In such a case, 3 journeys can be claimed for the block in total.

10) Can LTA be claimed if the actual claiming person has not travelled?

No, LTA cannot be claimed for the family if you as a claiming person are not included in the travel.

Conclusion

LTA exemption is available for the shortest route travelled and it can be availed only for travel on working days. You can also claim LTA while filing your taxes. Proofs are not needed by the IT department initially. It is better to keep the proofs handy, though.

If you have any other queries on LTA, we would be happy to answer you.

  • nivedita

    Hi. My question is related to carry forward of LTA. My husband files his return online. Where can we declare this carry forwarded LTA in ITR – 1/ITR-2. I guess Companies don’t provide an option for this.

    • Av Suresh

      Hi Nivedita, you need to mention the carry forward option to the company so that they would provide you the exemption and deduct tax accordingly.

      • Nini

        which ITR form to use for claiming the LTA in case we miss submitting the proof to employer?

        • Av Suresh

          ITR form does not depend on the LTA exemption. It depends on the type of income. If your total exempt income is more than Rs. 5000, you need to file ITR-2.

  • Av Suresh

    Q. I have a question reg LTA. I have never claimed LTA before. I have a ticket for FY 13-14. If i am not able to claim this thru LTA this financial year. Say next FY can i claim it with other ticket in next year?

    A. Yes, you can claim the LTA of 2013 in the first year of next block i.e. 2014. Hence, in 2014 you can claim two tickets. However, if your ticket is of 2014, then you cannot claim two in 2015. You have to claim one in 2014 and one in 2015.

  • Devz

    Hi I just wanted to know if one leaves the company one month before the financial year then the entire LTA is deducted or only part of the LTA for that one month should be deducted?
    Please revert. Thanks

  • Avijit

    Hello,
    I travelled from Bangalore to Bangkok ( and back ) for my leave. The ticket raised by Indigo had a single PNR number and a total invoice value. However, it was basically two flights – one from bangalore to calcutta and the other from calcutta to bangkok and I was given two seperate boarding passes. But indigo is refusing me to provide a billing breakup for the bangalore to calcutta flight, hence I cannot claim the tax exemption. Please suggest.

    • Av Suresh

      LTA is exempt for the shortest route to the destination. Hence, you need not submit the billing break up while filing returns. You can claim the amount directly.

  • Hitesh Khatri

    Hello,
    I have travelled in end of March-2014 and would like to claim LTA exemption in Oct-2014. Can I get exemption for my travel in this financial year i.e. April-2014 to March-2015. If not, then when should I claim for this exemption ? As per my company , I can not get exemption but I have travelled between calendar year i.e. Jan-2014 to Dec-2014 and want to claim in this calendar year. Please, suggest.

    • Av Suresh

      The current block is 2014-2017. So, you can claim exemption twice for travel in any of these calendar years. Check again with your company and ask them the reason for rejection.

      • Hitesh Khatri

        Thanks for your prompt reply.
        Our accountant says ” The financial year has been changed and you cannot get exemption of March-2014 in this current financial year,you can only claim for leave but not for exemption ( Tax deduction). If you have any documents / Internet links mentioning this type of situation, please , share me to convince him for getting exemption.

        • Hitesh Khatri

          Hi Suresh,
          Please, reply.

          • Av Suresh

            There are no links to explain this particular situation. You can ask the employer for proofs as to why LTA exemption cannot be provided in such a situation as no such thing is mentioned in LTA exemption in income tax act.

  • Hitesh Khatri

    Hello,
    I have travelled in end of March-2014 and would like to claim LTA exemption in Oct-2014. Can I get exemption for my travel in this financial year i.e. April-2014 to March-2015. If not, then when should I claim for this exemption ? As per my company , I can not get exemption but I have travelled between calendar year i.e. Jan-2014 to Dec-2014 and want to claim in this calendar year. Please, suggest.

  • J Kumar

    Hi Suresh,
    Both myself and my wife are working in two different firms (I am in Private & she is in Govt). We travelled from Delhi-Cochin in May 2014 by Rajdhani 1st class. In Jan 2015 we are again going to Cochin by Air. I would like to know whether both can claim LTA in this financial year for the above two different trips – like May 2014 – claim by my wife and Jan 2015 claim by myself? Pl reply. Regards/J Kumar

  • Navjeevan

    Hi Suresh

    Fantastic information my query i have never claimed LTA till date now my query for block 2010-13 i have traveled in June 2014 can i claim the same as carried forward ?? If yes will it be for IT return for FY 2014-15 ?

    also i traveled in Jan 2015 the same also can be claimed in the same FY 2014-15 or only one out of these ?? or i can use this for next FY IT return ??

  • Prashant

    Hi Suresh,

    For claiming LTA, does all of the family members needs to travel on the same ticket i.e. bearing same PNR no. or are the different PNR numbers allowed?

    Also, is it necessary to produce the ticket mentioning the price or just the boarding pass of flight is enough?

    In one of your answers you mentioned, ticket is not mandatory the price for the shortest route is considered, so this price how this is arrived on i.e. how the price is calculated on what basis?

    Thanks in Advance,
    Prashant

  • Prashant Dhamdhere

    Hi Suresh,

    Nice Article… I travelled to Andaman from Mumbai with my wife in Feb 2015 and I haven’t submitted travel bills to my employer for LTA claim in last finance year (2014-15). Also I haven’t claimed the same in return. Is it possible to claim LTA this finance yea (2015-16) ? Please let me know as soon as possible. My employer is not accepting
    those travel bills for LTA claim.

    Thanks in Advance,
    Prashant

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