Leave Travel Allowance

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LEAVE TRAVEL ALLOWANCE (LTA)
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What Is Leave Travel Allowance (LTA)

• It is an amount paid by employer to employee for
  traveling alone or with family.
• Valid only for domestic travel.
• Tax saving tool as per section 10(5) of Income
  Tax Act, 1961.

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RESTRICTIONS ON LTA

• Leave Travel Allowance does not include the
  following
• International travel
• Cost of hotels, food, sightseeing, etc.
• Cant be availed for more than 2 children born
  after October 1, 1998 Allowed for only 2
• travels in block of 4 years.

No international
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RESTRICTIONS ON LTA

• Exemption is available while in service or after
  termination or retirement.
• Family includes spouse, children, wholly
  dependent parents or siblings.
• If encashed, then amount is taxable.

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AMOUNTS PERMITTED IN LTA

• If employee travelled through
• Air economy class fare is exempted
• Rail AC first class rail fare is granted

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AMOUNTS PERMITTED IN LTA

• When Route is not connected through airway or
  railway
• Deluxe or first class fare for recognized mode of
  transport
• AC first class rail fare for unrecognized
• mode of transport

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RULES FOR AVAILING LTA

• Can be availed only if it is part of salary
  structure.
• Beyond the specified limit, amount received as
  LTA is included in taxable income.
• Tax is according to income tax slab rates.

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HOW TO CLAIM LEAVE TRAVEL ALLOWANCE ?

• Days should be marked as "leave "for which you
  are claiming LTA.
• Submit documentary evidence on rejoining.
• Some employers ask for form 12BB along with
  documents in month of January.

12BB
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