Hi, guys, this article is regarding LTA Claim Tips, most of the corporate employees must be knowing about this term but for those who don’t know, I will try to explain to you guys. I am also covering some tips if you are planning to claim LTA, so let’s get started.
What is Leave Travel Allowance (LTA )?
Leave Travel Allowance is a type of tax exemption which an Employee gets from his employer to cover his travel while he is on leave from work. LTA is exempt from tax u/s 10(5) of Income Tax Act, 1961.
Conditions for claiming LTA?
Conditions to claim LTA are:
- Actual Travel is necessary
- Travel must be Domestic either by Bus, Plane, or Train
- LTA can be claimed on the travel tickets of self, spouse, children’s and dependent parents
- You need to submit actual ticket and boarding pass as well in case of flight ticket
When can we claim LTA?
LTA can be claimed once in a calendar year, the calendar year for LTA works on a 4 years block for e.g. current LTA block will be from 2018-2021.
LTA eligible exemption?
The exemption is available only on the actual travel costs i.e., air, rail or bus fare incurred by the employee. No expenses such as local conveyance, sightseeing, hotel accommodation, food etc are eligible for exemption. The exemption is also limited to LTA provided by the employer.
Travelling Tips:
- Do not book travel tickets in case you are booking a package deal from an agent like makemytrip.com, yatra.com etc.. As they buy travel tickets in bulk and you will not get your ticket from them and travel ticket is must claim your LTA. You can always take a package excluding travel.
- If you are planning to claim LTA make sure to keep your boarding pass actual copy with you.