What LTA actually exempts
Leave Travel Allowance (LTA) exempts the travel cost of a domestic trip — not your whole allowance, not hotels or food. It is an allowance exempt under Section 10 and applies in the old regime.
The block-year rule
- You can claim LTA exemption for two journeys in a block of four calendar years
- If you miss a claim in a block, one journey can be carried to the first year of the next block
- Only actual travel within India counts, with tickets as proof
What you should do
- Confirm your employer paid LTA and you actually travelled in India
- Keep tickets/boarding passes as proof
- Claim only the eligible travel cost, not the full allowance
- Remember LTA exemption is old regime only — compare with old vs new regime
- Reconcile your salary breakup using Form 16 guide
Common mistake
Claiming LTA without travel. If you did not travel, the LTA received is fully taxable salary. Do not exempt it just because it appears in your package.
Related guides
Check your salary exemptions with LastMinute — file on incometax.gov.in.