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What Is Leave Travel Allowance or LTA
What Is Leave Travel Allowance or LTA
What is the maximum exemption that you can claim for LTA?
Maximum exemption as per the tax laws are given below. Your employer can reimburse you the entire amount spent by you on
travel at times even including boarding and lodging based on your entitlement as per the LTA reimbursement policy of the
company, but for tax purposes the excess amount will become taxable. Please remember that You can get exemption only for
the amount you are eligible for and the actual amount spent on travelling
Air : Economy class fare of a Air India, national carrier via the shortest route is allowed.
Railways : First class Air-conditioned (AC) rail fare via the shortest route is allowed.
Other modes: Other modes of travel includes, bus and rented vehicles. If a recognized public transport exists on the
route you travel, then up to first class deluxe fare is allowed. Else, an amount equivalent to the AC first class rail fare is paid.