USER MANUAL FOR – LEAVE TRAVEL

ALLOWANCE

2022

Object ID CoE-PRPO-Leave Travel Allowance

User Manual
Title User Manual for – Leave Travel
Document Allowance
Identification Creation 17th November 2022
Date
Author CoE – Performance, Rewards, Policies &
Operations

Version Author Creation Date

Revision History 1.0 CoE – Performance, Rewards, 17th November
Policies & Operations 2022

User Manual – Leave Travel Allowance V1.0 1

Leave Travel Allowance User Manual

1. Purpose
 To help employees seek clarification and assistance on process related to
Leave Travel Allowance (LTA) which is part of Flexi Pay Benefit.
 The LTA functionality will help employees to process LTA claim through
Payroll application.
2. Role of employee
 Provide authentic details and documents of the travel made and claim
amount to be reimbursed
 To check eligibility amount and status of LTA claim
3. Role of Central Payroll Team
 To approve or reject the LTA claim request according to the rules defined
under Income Tax Act, 1961
 Central Payroll Team to trigger claim process under ‘Reimbursement
section’ to process LTA claim in the same month.

Note- Central Payroll Team to approve the bills and documents submitted
by the employee for income tax benefit basis that income tax exemption will
be made, once the claim is approved, the amount will processed and
disbursed along with the salary at the end of the month.
4. Role of escalation
Work as a mediator between employee and central payroll team for quick solutions
 First Level-Ajay Gupta ([email protected])
 Second Level-Sandeep Raina ([email protected])

5. Categories that will be addressed under LTA (explained on page number 7)

 Eligibility
 Carry forward Balance
 Total Eligibility
 Reimbursed
 Reimbursable
 Balance
 Accrued Eligibility
6. Exclusions if any
 No LTA advance requests will be processed either online or offline.

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Understanding Leave Travel Allowance

1. What is Leave Travel Allowance (LTA)?

Leave Travel Allowance (LTA) is a type of allowance which is provided under Flexi Pay (Part of CTC) to
the employee who is travelling on leave to cover his travel expenses. LTA is an important component
of the salary (CTC Breakup part of Flexi Pay Component) of the employee as it is eligible for income
tax exemption as per the Income Tax Act, 1961

2. What are the conditions for Claiming LTA?

 Actual journey is a must to claim the exemption
 Only domestic travel is considered for exemption i.e., travel within India. No international
travel is covered under LTA
 The exemption for travel is available for the employee alone or with his family, where ‘family’
includes the employee’s spouse, children and wholly or mainly dependent parents, brothers,
and sisters of the employee. Further, such an exemption is not available for more than two
children of an employee born after 1 October 1998. Children born before 1 October 1998 do
not have any restriction. Further, in cases of multiples births on second occasion after having
one child is also not affected by this restriction.

3. What is the Eligibility for LTA Exemption?

The exemption is available only on the actual travel costs i.e., 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 eligibility.

For example, if LTA granted by employer is Rs 30,000 and actual eligible travel cost incurred by
employee is Rs 20,000, exemption is available only to the extent of Rs 20,000 and balance Rs 10,000
would be included in taxable salary income.

No Scenario Eligible exemption

Place of journey and destination are not The amount equivalent to the air-conditioned first class rail
1 connected by any recognized public fare, for the distance of the journey by the shortest route,
transport system as if the journey had been performed by rail.
Place of journey and destination are not
The amount restricted to 1st class or deluxe class fare by
2 connected by rail (partly/fully) but connected
the shortest route to the place of destination
by other recognized public transport
The amount spent for any mode of transport other than by
Place of journey and destination are
3 air, restricted to air-conditioned first class rail fare by the
connected by rail
shortest route to the place of destination
The amount is restricted to the air economy fare of the
4 Journeys performed by air national carrier (Indian Airlines or Air India) by the shortest
route to the place of destination.

4. Can LTA exemption be claimed on every vacation?

No, an LTA exemption is available for only two journeys performed in a block of four calendar years.

5. What is a Block Year?

A block year is different from a financial year and is decided by the Government for LTA exemption
purposes. It comprises of 4 years each. The very first 4-year block commenced from 1986. List of block
years are 1986-1989, 1990-93, 1994-97, 1998-2001, 2002-05, 2006-09, 2010-13 and so on. The block

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applicable for the current period is the calendar year 2022-25. The previous block was the calendar
year 2018-21.

6. What is Carryover of Unclaimed LTA?

In case an employee has not availed exemption with respect to one or two journeys in any of the block
of 4 years, he is allowed to carryover such exemption to the next block provided he avails this benefit,
in the first calendar year of immediately succeeding block.
Consider the below example for better understanding:

• Where carry over exemption is claimed in the first calendar year of the immediately succeeding
block
Particulars
Block year 2014-17 Block year 2018-21
of journey

Apr-15 Exemption claimed in April 2015 NA

Exemption claimed in June 2018 (considered to be
Jun-18 NA
carried over from the previous block)
Mar-20 NA Exemption claimed in March 2020
Jan-22 NA Exemption claimed in January 2022
Where carry over exemption is not claimed in the first calendar year of the immediately succeeding
block
Particulars
Block year 2014-17 Block year 2018-21
of journey

Apr-15 Exemption claimed in April 2015 NA

Exemption claimed in June 2019 (Can’t be considered
Jun-19 NA to be carried over from the previous block as travel
should have been performed in 2018 itself)
Mar-20 NA Exemption claimed in March 2020
No exemption available as two eligible journeys already
Jan-22 NA claimed. (Maybe claimed by the working spouse of the
employee receiving LTA)

7. What is Multi-Destination journey?

Income tax provision provides exemption w.r.t travel cost incurred on leave to any place in India.
Conditions pertaining to the mode of transport also makes reference to the place of ‘origin’ to the
place of ‘destination’ and the route which must be the shortest available route.

Hence, if an employee is travelling to different places in a single vacation, the exemption can only be
availed for the travel cost eligible from the place of origin to the farthest place in the vacation by the
shortest possible route.

Note: Whichever the mode of travel is preferred the exemption would be provided considering the
Location from where the journey has started and the final destination from where the return journey
has started. Lodging and Boarding expenses are not allowed to avail tax exemptions.

For E.g.
An employee travelled by Road from 1. Mumbai to Ahmedabad and then 2. Ahmedabad to Udaipur
and then 3. Udaipur to Jaipur and then 4. Jaipur to Delhi and then 5. Delhi to Mumbai. In the above
case the exemption would be calculated basis the Start Location as Mumbai and end Location as Delhi
and then to Mumbai basis the 1st Class AC Train Fare, basis the shortest route and lowest fare for

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number of members travelled. Also note that the exemption in case of road travel will be calculated
basis the fares released/updated by Government for public transport.

8. Process

1. Login into ADFSsamay Payroll(Workline)

2. Login into Payroll(Workline) with your credentials
3. Click on Sign in

4. Click on Compensation and Benefits

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 5. Go to Reimbursement section. Click on Reimbursement option.

6. Under Reimbursement click on Leave Travel Allowance.

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 7. You will be able to view the following page with the LTA details

8. Click on ‘New Claim’ option to make a claim request

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 9. Fill in all the mandatory details necessary to make the claim

10. You can use comma to separate to fill multiple ticket details

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 11. Upload all travel related bills/tickets/ boarding passes in PDF or JPEG format. Click on the
check box to confirm the information provided. Then click to save & submit option to submit
claim request.

12. Click on ‘Go To Leave Travel Allowance’ to check your LTA status.

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 13. View your LTA status under Travel Proof.

14. Click on Action option to view details of the LTA claim request made.

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 15. If you wish you can even download the LTA request claim and print it.

16. Once the request is approved/rejected you can view the status under
Reimbursement Leave Travel Allowance

In case of any query you can seek assistance on helpdesk ticketing tool or write on
[email protected]

Thank you!

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