• Leave Travel Concession/Allowance (LTC/LTA):

    Overview: Leave Travel Concession (LTC) or Leave Travel Allowance (LTA) is a benefit provided by employers to encourage employees to take leaves and travel within the country with their family. It is a part of the salary package and is exempt from tax subject to certain conditions.

    Conditions for Claiming LTC/LTA:

    1. Actual Journey:

      • Exemption is available only if an actual journey is undertaken.
    2. Domestic Travel Only:

      • Only domestic travel expenses are eligible for exemption; no international travel is covered.
    3. Family Members:

      • Exemption is available for the employee alone or with family, including spouse, children, and dependent parents, brothers, and sisters.
    4. Number of Children:

      • Restrictions on the number of children eligible for exemption if born after a specific date.

    Eligible LTC/LTA Exemption:

    • Exemption is limited to the actual travel costs (air, rail, or bus fare) incurred by the employee.

    Exemption w.r.t Various Modes of Transport:

    1. Place Not Connected:

      • Equivalent to air-conditioned first-class rail fare by any recognized public transport system.
    2. Place Connected by Rail:

      • Restricted to air-conditioned first-class rail fare by the shortest route to the place of destination.
    3. Journey by Air:

      • Restricted to air economy fare of the national carrier (Indian Airlines or Air India) by the shortest route.

    Procedure to Claim LTC/LTA:

    • Procedure is employer-specific; employees must inform the employer about travel plans, apply for leave, and submit travel bills and supporting documents.


    1. Who is Eligible for LTA?

      • Usually available to employees of government or public sector undertakings and employees of private companies.
    2. What Does LTA Cover?

      • LTA covers only the travel expense incurred during the travel.
    3. How Often Can an Employee Claim LTA?

      • An employee can claim LTA/LTC twice in a block of four years.
    4. What is the Minimum Trip Duration under LTA/LTC?

      • Generally, a minimum of three days is required for eligibility.
    5. Can LTA/LTC Be Availed for International Travel?

      • No, LTA/LTC can only be availed for domestic travel within India.
    6. Can LTA/LTC Be Claimed for Travel to Hometown?

      • Yes, provided the hometown is at a distance from the place of work and residence.
    7. Can LTA/LTC Be Claimed for Travel During Probation?

      • Generally not allowed during probation; employer-specific policies may apply.
    8. Can LTA/LTC Be Claimed for Travel by a Private Car?

      • Yes, subject to conditions; reimbursement may be limited.
    9. Can LTA/LTC Be Claimed for Travel During the Notice Period?

      • Yes, if leave is already applied for before the notice period begins.
    10. Is There a Limit on the Amount That Can Be Claimed Under LTA/LTC?

    • Yes, reimbursement is limited to actual expenses incurred, subject to conditions.
    1. Can an Employee Claim LTA/LTC for Travel Expenses Incurred for Dependents?
    • Yes, for dependents like spouse, children, parents, etc.
    1. Can an Employee Claim LTA/LTC for Travel to Multiple Destinations?
    • Yes, provided the total cost does not exceed the eligible amount.
    1. Can an Employee Claim LTA/LTC for Travel to Attend a Business Conference?
    • No, LTA/LTC is for leisure travel during leave period.
    1. Can an Employee Claim LTA/LTC for Travel by a Rented Vehicle?
    • Yes, subject to conditions; reimbursement limited to rental charges.
    1. Can an Employee Avail LTA/LTC for Travel During the First Year of Employment?
    • Generally not allowed in the first year; employer-specific policies may apply.
    1. Can an Employee Claim LTA/LTC if They Have Resigned?
    • Yes, if leave was obtained for the travel period before resignation, subject to conditions.