LTA exemption is the tax break on Leave Travel Allowance, granted under Section 10(5). When your employer pays LTA and you actually travel within India while on leave, the travel fare can be exempt from tax, within limits. Like HRA, it is an old regime benefit only.

What is exempt, and what is not

Only the travel fare is exempt: air, rail or bus tickets for you and your family, meaning spouse, children and dependent parents and siblings. Hotel stay, local transport, sightseeing and food are never covered. Air travel is capped at the economy fare of the national carrier by the shortest route; rail is capped at first-class AC fare. The exemption cannot exceed the LTA amount your employer actually pays.

The four-year block

You can claim LTA exemption for two journeys in a block of four calendar years. The blocks are fixed by the government, for example 2022 to 2025, with the next running 2026 to 2029. If you use only one claim in a block, one unused journey can be carried into the first year of the next block. Children born third or later after October 1998 are restricted to two for the family count.

Frequently asked questions

Can I claim LTA without travelling?

No. Actual travel with valid fare evidence is essential. LTA received without a matching journey is fully taxable.

Does LTA cover international travel?

No. Only travel within India qualifies. A foreign trip gets no exemption even for the domestic leg.

Can both spouses claim LTA for the same trip?

Each can claim from their own employer, but not for the same journey. They should claim different journeys within their respective blocks.

Track your block and claim with the LTA Exemption Calculator, declare it through Form 12BB, and see the overall tax effect in the Income Tax Calculator.