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Common Ground News

Is LTC exempted from income tax?

Author

Christopher Snyder

Updated on March 14, 2026

Is LTC exempted from income tax?

1. LTC / LTA granted by an employer is exempted from Income Tax only when the amount is spent for the purpose of performing holiday Travel to a place in India. In the case of air travel, Income Tax Exemption is restricted to economy fare of the national carrier by the shortest route to the place of destination.

Likewise, people ask, is LTC claim taxable?

LTA, also known as leave travel concession (LTC), cannot be claimed every year and you may not be able to claim exemption on the full amount. It is most likely that LTA is a part of your salary package but it will not be treated as tax-free income every year under section 10(5) of The Income Tax Act, 1961.

Also, how do I claim LTA for tax exemption? To avail of the tax break, the employee has to furnish documentary evidence of the travel to the employer. In case you don't travel at all or you don't submit the travel bills, the LTA amount gets paid as part of the employee's salary after tax deduction as per the applicable income slab.

Beside above, how much LTA is tax exempt?

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.

How much LTC can be claimed?

Usually LTC can be availed twice in a block of a four calendar years. Current block of years will be as below. 2014-2017 (From 1st January 2014 to 31st December 2017). As said above you can claim only twice in a block of 4 years period.

How do I claim LTC?

Simply, you can claim for LTC from your company. The claim should be a valid trip made by you between the leaves which you have applied in your company. The claim should be supported by a proof of travel. LTC is offered on the employee's journey.

What is difference between LTA and LTC?

LTA is leave travel allowance & LTC leave travel concession . LTA is fully taxable & LTC is allowed as per rules defined in Income Tax Act ( As 2 travel allowed in a block of 4 years).

What happens if you don't claim LTA?

#Carry forward your unspent LTA
If you have not claimed your LTA in first year, the amount is accumulated in your kitty. Hence, you can claim for a higher amount if you travel in next year. Year 1 amount + year 2 amount is available for LTA tax exemption claim in year 2.

How much travel expenses can I claim?

Cents per kilometre: You can claim a flat rate of 66c per kilometre for every business kilometre you cover. You'll need to keep a diary of all work-related journeys so you can work out how many kilometres you've travelled for work. This method can only be used for claims up to 5,000 km's per vehicle.

What is the current LTA block of 4 years?

Read on to know them. LTA exemption is available for 2 journeys in a block of 4 years. The block applicable for the current period is calendar years 2018-21. Leave Travel Allowance (LTA) forms a part of an employee's total CTC (cost-to-company).

How many times we can claim LTA in a year?

LTA tax exemption can be claimed twice (two journeys taken) in a block of four calendar years. That means, the current block of four years is 2014 to 2017. Remember, you can claim LTA reimbursement every year, but not the tax exemption.

Can hotel bills be claimed under LTA?

LTA covers only the cost of travel for the trip. Hotel accommodation, food, etc. cannot be claimed for exemption.

How much is LTA of basic salary?

Note: The salary structures is updated effective FY 2018-2019.
ComponentTax Deduction
HRATax Exemption subject to the minimum of the following 3 conditions 1) Actual HRA 2) 50% of Basic + DA if Metro or 40% of Basic + DA if non metro 3) Total Rent – 10% of Basic
LTAAs per actuals of the fare expenses on leave travel

Is LTC taxable income?

LTC / LTA granted by an employer is exempted from Income Tax only when the amount is spent for the purpose of performing holiday Travel to a place in India. In the case of air travel, Income Tax Exemption is restricted to economy fare of the national carrier by the shortest route to the place of destination.

What is the LTA exemption limit?

LTA Rules for Exemption u/s 10(5)
LTA Exemption is available for travel allowance given by the employer to the employee or his family. The exemption is claimed for two journeys in a block of four years. Presently, the block of 2014-2017 is going on. Income Tax Department makes these blocks.

Can I claim LTA in income tax return?

You cannot claim LTA while e-filing on ClearTax or using any other software. Leave Travel Allowance or LTA is an allowance that your employer can give you. It cannot be claimed in the tax return directly. If you've shared receipts with your company, you'll see it in your Form 16.

Can LTA be claimed in 2 consecutive years?

Under Section 10 (5) of the Income-Tax Act, an employee can undertake a trip within the country by claiming earned leave. An employee cannot claim this tax benefit every year. It can be claimed only twice in a pre-defined block of four calendar years. The claim can be in alternate years or even consecutive years.

Is HRA taxable?

For most employees, House Rent Allowance (HRA) is a part of their salary structure. Although it is a part of your salary, HRA, unlike basic salary, is not fully taxable. Subject to certain conditions, a part of HRA is exempted under Section 10 (13A) of the Income-tax Act, 1961. This helps an employee to save tax.

How is HRA calculated?

HRA is mainly determined by your salary. As per the income tax rules, the tax-exempt part of the HRA (House Rent Allowance) is the minimum of the following amounts: Actual HRA component of salary. 50% of basic salary if he resides in Delhi, Chennai, Kolkata, or Mumbai; 40% if his residence is in any other city.

How many days leave for LTA claim?

LTA (Leave Travel Allowance), is a benefit provided by almost all employers to their employees which provide income tax benefit. One can claim LTA for two times in a block of 4 years. Employees would take leave, enjoy their travel and claim this as reimbursement where income tax is not deducted.

What is LTA in income tax?

Leave Travel Allowance (LTA) is a type of allowance which is given to an employee from his employer to cover his travel expenses when he is on leave from work. Sometimes it is also known as Leave Travel Concession (LTC). LTA is exempt from tax u/s 10(5) of Income Tax Act, 1961.

How many LTC can be availed in a block year?

Please check your eligibility before applying for LTC. LTC to Home Town can be availed once in a block of two years and LTC to Any Place in India may be availed once in a four year block. If not availed during these blocks, the LTC may also be availed in the first year of the following block.

What is the standard tax deduction?

For the 2019 tax year, which we file in early 2020, the federal standard deduction for single filers and married folks filing separately is $12,200. It's $24,400 if you're a surviving spouse or you're married and you're filing jointly. If you're the head of your household, it's $18,350.

Which block year of LTC is going on?

The next LTC Block year is 2018-2021. During this Block years , a Government servant can avail two concessions. In line with the above rule position, the LTC for the block of 2016-2017 can be carried forward to 2018 if it was not availed in that particular block .

Is it necessary to take leave for LTC?

LTC to any place in India is admissible in lieu of one of the two journeys to Home Town once in a block of four years. LTC cannot be availed during holidays alone, but must be combined with regular leave or with casual leave. The leave should be recommended by the competent authority.

What is current LTC block year?

Even while the Current LTC Block Year for Central Government Employees is 2018-21 is under operation, automatic extension of One Year given for all LTC block years under Rule 10 of LTC Rules allows for availing All India LTC and Home Town LTC in respect of extended LTC block 2014-17 till 31st December 2018 if not

What is the rule of LTC?

Leave Travel Concession (LTC) is granted to Central Government employees for travel to various parts of the country and home as well. The number of home travel visits allowed are two. This is made available every four years. One of the hometown visits can be substituted with an “All India visit”, if needed.

Can husband and wife both claim LTC?

According to the existing position where both husband and wife are Governmrart servants and are residing together, they constitute one family unit for the purpose of LTC and only one of them can claim this concession and the other spouse travels as a member of, his/her family.

Who can claim LTC?

servants, are residing separately can claim the benefit of LTC individually for their dependent parents, minor brothers and sisters and also declare two separate places as their respective hometowns. Therefore, the husband and wife when both are Govt.

Can LTC be Cancelled?

You are guaranteed to have your policy renewed and remain in-force, every time you pay the premium. The insurance company cannot cancel your policy. The only way that an insurance company can fail to renew your long-term care policy is if you fail to pay the premium in a timely manner.

Is dynamic fare refundable LTC?

NEW DELHI: Dynamic or flexi-fare in Rajdhani and Shatabdi trains will be admissible under the Leave Travel Concession (LTC) allowance. "Such Government servants will get reimbursement of fare after deducting the dynamic fare component," the directive said.