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.

FAQs:

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.

11. Can an Employee Claim LTA/LTC for Travel Expenses Incurred for Dependents?

• Yes, for dependents like spouse, children, parents, etc.

12. Can an Employee Claim LTA/LTC for Travel to Multiple Destinations?

• Yes, provided the total cost does not exceed the eligible amount.

13. Can an Employee Claim LTA/LTC for Travel to Attend a Business Conference?

• No, LTA/LTC is for leisure travel during leave period.

14. Can an Employee Claim LTA/LTC for Travel by a Rented Vehicle?

• Yes, subject to conditions; reimbursement limited to rental charges.

15. 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.

16. Can an Employee Claim LTA/LTC if They Have Resigned?

• Yes, if leave was obtained for the travel period before resignation, subject to conditions.