LTA Exemption: The Two-Trip Rule and How to Actually Claim It
Leave Travel Allowance rules, eligible expenses, and how often you can claim — explained with examples.
Leave Travel Allowance covers domestic travel for you and your family — and the exemption is allowed twice in a four-year 'block'. The current block is 2022-2025. Most salaried Indians under-use this benefit.
What's Covered
- Air, rail, or bus fare for domestic travel only — international travel is NOT covered
- You + spouse + up to 2 children + dependent parents/siblings
- Economy class airfare or AC first class rail fare, shortest route
- Only fare — hotel, food, sightseeing not covered
The Block Period
Government defines 4-year blocks (e.g., 2022-2025, 2026-2029). You can claim LTA exemption for up to 2 journeys within a block. If you claim only once in a block, the unused one carries forward to the first year of the next block.
Estimate take-home with LTA: In-Hand Salary Calculator → https://calculatordesk.in/in-hand-salary-calculator
Documentation
- Tickets and boarding passes
- Leave application proving you actually took leave
- Submit to employer before year-end cut-off; missed submission = LTA becomes taxable
Frequently Asked Questions
Is LTA allowed in the new tax regime?
No. LTA exemption requires the old regime. In the new regime, LTA is fully taxable.
Can I claim LTA without actually travelling?
No. Travel must actually happen. If you don't travel, the LTA amount paid by your employer is fully taxable as salary.
What about LTA for the COVID years?
The government had introduced an LTC Cash Voucher Scheme allowing notional LTA claim by spending on goods/services at 12% GST. That scheme has ended; only actual travel qualifies now.