Leave Travel Allowance (LTA) Calculator

The Leave Travel Allowance (LTA) Calculator is a free online tool designed to help salaried employees in India quickly estimate their LTA exemption under the Income Tax Act. Whether you’re planning a family vacation or optimizing your tax savings, this tool simplifies Leave Travel Allowance calculation by factoring in your eligible travel expenses, family members, mode of transport, and applicable rules.

Leave Travel Allowance, also known as LTA or Leave Travel Concession (LTC), is a tax-free component in your salary structure that covers travel costs for vacations within India. Provided under Section 10(5) of the Income Tax Act, it offers significant LTA tax exemption benefits for salaried employees, helping reduce taxable income and maximize take-home pay.

This comprehensive guide explains everything about LTA, including LTA rules, eligibility, how to claim LTA, calculation steps, examples, and more. Use our LTA calculator to get instant estimates and plan your trips smarter.

What is Leave Travel Allowance (LTA)?

Leave Travel Allowance is a reimbursement or allowance provided by employers to cover travel expenses incurred by employees during leave for vacations. It is also commonly referred to as Leave Travel Concession (LTC). The primary purpose is to encourage employees to travel domestically while enjoying tax benefits.

What is LTA in salary? It forms part of your CTC (Cost to Company) and appears as a separate component in your payslip or Form 16. The amount is decided by the employer and can vary based on your grade, location, and company policy.

LTA tax benefits make it a popular tax-saving tool for salaried employees, as qualifying expenses are exempt from tax up to certain limits.

LTA Exemption under Section 10(5)

The LTA exemption is governed by Section 10(5) of the Income Tax Act, 1961. It allows exemption on the least of:

• Actual travel expenses incurred.
• The LTA amount provided by the employer.
• The eligible fare for the shortest route by the chosen mode of transport (economy class for air, AC first class for rail, etc.).

LTA exemption under Income Tax Act applies only to actual journey costs, accommodation, food, sightseeing, or other incidental expenses are not covered under LTA.

LTA exemption rules are strict: travel must be within India (LTA domestic travel only), and international travel is not allowed (LTA international travel not permitted).

LTA Eligibility Criteria

To claim LTA eligibility, you must meet these conditions:

• You are a salaried employee receiving LTA as part of your salary.
• The journey is undertaken during leave (privilege leave or casual leave).
• Travel is within India (LTA within India only).
• You can claim for yourself and eligible LTA family members, including:
  • Spouse.
  • Children (up to two, born on or after October 1, 1998; no limit for those born before).
  • Wholly dependent parents, siblings (in some interpretations, dependent parents and siblings may qualify if wholly dependent).

Who is eligible for LTA?
Any salaried individual with LTA in their salary package, but only under the old tax regime.

Who can claim Leave Travel Allowance?
Primarily salaried employees opting for the old regime; self-employed or professionals are not eligible.

LTA for dependent parents is allowed if they are wholly dependent. LTA for spouse and children is standard, with LTA for children limited to two per journey (exceptions for pre-1998 births).

LTA for dependent parents siblings may apply if dependency is proven, but typically focuses on spouse, children, and parents.

LTA Block Year and Claim Frequency

LTA follows a block year system for exemptions.

• What is the LTA block year?
  A four-calendar-year period defined by the government. You can claim exemption for a maximum of two journeys in one block. Current LTA block is 2022-2025 (ending December 31, 2025). The next block is expected to be the LTA block year 2026-2029 (starting January 1, 2026).
• How often can I claim LTA?
  Twice in a four-year block (two journeys). You cannot claim on every vacation (can I claim LTA on every vacation? No).
• How many times can I claim LTA?
  Maximum two journeys per block. Two journeys in four years LTA is the rule—only two qualify for exemption. Current LTA block 2026 refers to the upcoming period starting 2026.

LTA Carry Forward Rules

Can LTA be carried forward?
Yes, if you don’t claim one or both journeys in a block, one unclaimed journey can be carried forward to the first year of the next block.

LTA carry forward is allowed only once and must be used in the first calendar year of the succeeding block (e.g., unclaimed from 2022-2025 can be carried to 2026). Unclaimed LTA rules and carry over LTA to 2026 provide flexibility for postponed trips. Carry forward LTA to 2026 or carry over LTA to the next block is possible for one journey. LTA carryover to the next block ensures you don’t lose the benefit entirely. LTA exemption after 2025 block or LTA block after 2025 allows carryover into the new period.

LTA Under Old vs New Tax Regime

• LTA under the old tax regime is fully eligible for exemption.
• LTA new tax regime is not available—LTA exemption only old regime.
• Is LTA available in the new tax regime? No, the new regime (Section 115BAC) excludes most exemptions, including LTA.
• LTA exemption 2026 follows the same pattern, available only in the old regime.
• LTA claims in the old regime were mandatory for tax benefits.

How to Calculate LTA Exemption

Leave Travel Allowance calculation follows these steps:

1. Determine the actual travel cost (tickets only).
2. Identify the eligible amount: shortest route fare by permitted mode.
3. Compare with employer-provided LTA amount.
4. Exemption = lowest of the three.
5. Taxable portion = excess over exemption.

LTA exemption limit calculation depends on:

• LTA shortest route (exemption limited to shortest route fare).
• Mode: LTA air travel exemption (economy class), LTA rail fare exemption (AC first class), LTA economy class fare, LTA AC first class rail, LTA economy class national carrier (e.g., Air India), LTA economy class Air India.

LTA for other modes of transport (public transport) is allowed at actual or equivalent fare.

LTA exemption amount is capped at actual expenses or employer limit.

LTA actual expenses lower means exemption is limited to actual spend.

LTA taxable portion is the amount exceeding eligible exemption.

Multi-destination journey LTA is allowed, but exemption based on shortest route to farthest point.

LTA Calculation Example

Example 1: Family of 4 (employee + spouse + 2 children) travels by air. Economy fare shortest route: Rs 15,000 per person. Total actual fare: Rs 70,000. Employer LTA: Rs 50,000.

Exemption: Lower of Rs 70,000 (actual), Rs 50,000 (employer), or Rs 60,000 (Rs 15,000 x 4). So, Rs 50,000 exempt.

Example 2: Rail travel, AC first class fare shortest route: Rs 8,000 per person. Actual: Rs 40,000. Employer LTA: Rs 30,000. Exemption: Rs 30,000 (lowest).

The LTA calculation example shows exemption never exceeds employer limit or actual costs.

Expenses Covered and Not Covered Under LTA

What expenses are covered under LTA?
Only actual journey fares (air, rail, bus, etc.).

What is not covered under LTA? 

• LTA accommodation expenses, LTA food expenses, hotel stays, meals, sightseeing, shopping (LTA meals accommodation not covered).
• LTA hotel accommodation and LTA food accommodation not covered.
• LTA domestic travel expenses only for transport.
• LTA travel expenses only qualify.
• LTA accommodation food not covered.

How to Claim LTA

1. Undertake the journey during leave.
2. Collect proofs: LTA original tickets, boarding pass, bills.
3. Submit to employer (usually via LTA claim in Form 12BB or HR portal).
4. Employer reimburses or adjusts tax.
5. Claim in ITR if needed (LTA claim in ITR).

The LTA claim process involves submitting documents to the employer.

• LTA claim process employer requires proofs.
• LTA documents required: LTA original bills boarding pass, tickets, boarding passes (LTA tickets boarding pass, LTA documentary proof, LTA valid proof documents).
• LTA proof is not mandatory for employers in some cases, but recommended.
• LTA claim in Form 16 reflects the exempt amount.
• Claim LTA exemption in ITR for final adjustment.

How to claim LTA exemption:

• Submit proofs and declare in ITR under the old regime.
• LTA original tickets boarding passes are essential.
• LTA valid proof includes tickets and boarding passes.

Common LTA Mistakes to Avoid

• Claiming non-travel expenses.
• Forgetting block year limits.
• Claiming international trips.
• Not using the shortest route.
• Opting for a new regime but expecting exemption.
• Missing carry forward deadlines.
• Claiming for more than two children (post-1998).
• Not preserving proofs.

Things to keep in mind for LTA: Plan within block, use domestic only, submit proofs timely.

LTA restrictions limitations: Domestic, two journeys, old regime only.

LTA Advantages and Tax Savings

• LTA advantages: LTA tax savings, tax free travel allowance salaried employees, LTA tax benefits salaried employees.
• LTA tax saving can be substantial, especially for family travel.
• LTA tax benefits reduce overall tax liability.
• LTA financial planning salary helps optimize salary structure.
• LTA vacation tax exemption and LTA vacation tax exemption India promote domestic tourism.
• LTA tax saving salaried employees is a key perk.
• LTA tax benefit salaried employees encourages vacations.

LTA Rules 2025-2026 Updates

• Leave Travel Allowance 2025 follows the current block ending 2025.
• LTA rules 2026 will transition to a new block.
• LTA exemption FY 2025-26 applies to the old regime.
• LTA exemption 2026 India continues similar rules.
• LTA government guidelines emphasize proofs and domestic travel.
• LTC Cash Voucher Scheme was a past relaxation (not current).

FAQs on Leave Travel Allowance

1. What is Leave Travel Allowance?

   It is a salary component that reimburses domestic travel expenses during leave, exempt from tax under Section 10(5).
   
   

2. Is LTA available in the new tax regime?

   No, LTA exemption is only under the old tax regime.
   
   

3. How often can I claim LTA?

   Maximum two journeys in a four-year block.
   
   

4. What is the current LTA block period?

   2022-2025 (ending December 31, 2025); next is 2026-2029.
   
   

5. Can LTA be carried forward?

   Yes, one unclaimed journey can be carried forward to the first year of the next block (e.g., to 2026).
   
   

6. Is international travel allowed under LTA?

   No, LTA is for domestic travel within India only.
   
   

7. Can I claim LTA for my family?

   Yes, for spouses, up to two children (with limits), and dependent parents.
   
   

8. What documents are needed for an LTA claim?

   Original tickets, boarding passes, and proof of journey.
   
   

9. What expenses are covered under LTA?

   Only actual travel fares (air, rail, etc.); accommodation and food are not covered.
   
   

10. What is not covered under LTA?

    Hotel stays, meals, sightseeing, shopping, and non-transport costs.
    
    

11. How many times can I claim LTA in a block?

    Up to two journeys per four-year block.
    
    

12. Is LTA only under the old regime?

    Yes, not available in the new tax regime.
    
    

13. Can I claim LTA for dependent parents?

    Yes, if wholly dependent.
    
    

14. How to claim LTA in ITR?

    Declared under exemptions in old regime ITR, supported by employer-provided details in Form 16.
    
    

15. Is accommodation covered in LTA?

    No, only travel fares qualify for exemption.

Use the SalaryBox LTA Calculator to input your details and get an accurate estimate of your exempt amount. Plan your vacations wisely to maximize LTA tax savings! If you have questions, feel free to reach out.