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Lta Guidelines

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28 views

Lta Guidelines

Uploaded by

sidhdharth.yadav
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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LEAVE TRAVEL ASSISTANCE/ALLOWANCE (LTA)

Leave Travel Assistance is paid as part of the compensation structure of an employee


under the prevailing HR policies of the employer.

PURPOSE
The purpose of LTA is to provide a reasonable assistance to all the employees during
vacation.

ELIGIBILITY
Employees are eligible to receive LTA as per the prevailing HR policies of the company.

PROVISIONS OF THE INCOME TAX ACT 1961 RELATING TO LTA


Section 10(5) read with Rule 2 B of the Act governs the provisions.

1. LTA is received by, or, due to an employee (whether an Indian citizen or not) for
himself and his family (spouse, children and parents, brothers and sisters of the
individual wholly or mainly dependant on the individual)
2. LTA is received for journey to any place in India during leave or on retirement or
termination of service.

Rule 2 B
Amount of exemption
Exemption is limited to the amount of expenses actually incurred by the employee for
the purposes of travel. Thus employee is required to keep an account of the actual
expenditure incurred per person in the family and furnish evidence of such expenditure.
If no expenditure is incurred, exemption will not be allowed in respect of leave travel
concession received by the employer.

For the purpose of exemption, the following expenditure is considered.


1. Travel by Air: An amount not exceeding the Economy Class fare of the National
Carrier by the shortest route to the place of destination.
2. Travel by Rail: An amount not exceeding the Air-conditioned First Class Rail
fare by the shortest route to the place of destination.
3. Travel by any other mode to areas not connected by rail:
a. If a recognized public transport system exists – First Class or deluxe class
fare on such transport by the shortest route to the destination
b. If no recognized public transport system exists – Air-conditioned First
class rail fare for the distance of the journey by the shortest route, as if the
journey has been performed by rail.
The following are the documents eligible for Tax Exemption
1. Flight ticket with boarding pass for economy class
2. Train ticket original or photocopy with no. of persons traveled – maximum upto
1st class a/c fare
3. If the travel is by any other mode, then original travel bills / cab bills clearly
mentioning the place of travel, no. of persons traveled with kms and trip chart,
etc.

Note:
1. Multiple travels are not allowed for tax exemption
2. Only Single Round Trip is allowed for tax exemption
3. Foreign Travels are not eligible for tax exemption

Block of years
1. Exemption will be available to an individual in respect of 2 journeys performed in a
Block of 4 calendar years commencing from the calendar year 1986.
2. Where such travel concession or assistance is not availed of by the individual during
any such block of 4 calendar years, an amount in respect of the value of LTA, if any, first
availed by the individual during the first calendar year of the immediately succeeding
block of 4 calendar years shall be eligible for exemption.
3. The current Block is 2022 – 2025.

Number of Children for granting exemption


1. Exemption is not available to more than 2 surviving children if they are born on or
after 1st October 1998.
2. The rule shall not apply in respect of children born before 1st October 1998 and in
respect of multiple births after one child.
Annexure 6 ‐ Self‐Declaration for claiming Leave Travel Allowance for the financial
year ending 2023‐24

Employee Name:

Employee No.:

PAN No.:

Persons in respect of whom LTC is proposed to be availed

Relationship with
S. No Name Age Date of Birth
Employee
1
2
3
4
5

Details of LTA Claimed as exempt in the block of four Carry Forward Travel, if any -
year Y/N (Block carried forward)
Y/E-2022
Y/E-2023
Y/E-2024
Y/E-2025

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