LEAVE TRAVEL CONCESSION/ALLOWANCE (LTC/LTA) 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: Actual Journey: Exemption is available only if an actual journey is undertaken. Domestic Travel Only: Only domestic travel expenses are eligible for exemption; no international travel is covered. Family Members: Exemption is available for the employee alone or with family, including spouse, children, and dependent parents, brothers, and sisters. 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: Place Not Connected: Equivalent to air-conditioned first-class rail fare by any recognized public transport system. Place Connected by Rail: Restricted to air-conditioned first-class rail fare by the shortest route to the place of destination. 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. FAQs: Who is Eligible for LTA? Usually available to employees of government or public sector undertakings and employees of private companies. What Does LTA Cover? LTA covers only the travel expense incurred during the travel. How Often Can an Employee Claim LTA? An employee can claim LTA/LTC twice in a block of four years. What is the Minimum Trip Duration under LTA/LTC? Generally, a minimum of three days is required for eligibility. Can LTA/LTC Be Availed for International Travel? No, LTA/LTC can only be availed for domestic travel within India. Can LTA/LTC Be Claimed for Travel to Hometown? Yes, provided the hometown is at a distance from the place of work and residence. Can LTA/LTC Be Claimed for Travel During Probation? Generally not allowed during probation; employer-specific policies may apply. Can LTA/LTC Be Claimed for Travel by a Private Car? Yes, subject to conditions; reimbursement may be limited. Can LTA/LTC Be Claimed for Travel During the Notice Period? Yes, if leave is already applied for before the notice period begins. 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. Can an Employee Claim LTA/LTC for Travel Expenses Incurred for Dependents? Yes, for dependents like spouse, children, parents, etc. Can an Employee Claim LTA/LTC for Travel to Multiple Destinations? Yes, provided the total cost does not exceed the eligible amount. Can an Employee Claim LTA/LTC for Travel to Attend a Business Conference? No, LTA/LTC is for leisure travel during leave period. Can an Employee Claim LTA/LTC for Travel by a Rented Vehicle? Yes, subject to conditions; reimbursement limited to rental charges. 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. Can an Employee Claim LTA/LTC if They Have Resigned? Yes, if leave was obtained for the travel period before resignation, subject to conditions.