Income Tax
LTA (Leave Travel Allowance)
Salary component exempt from tax for domestic travel expenses — claimable twice in a block of 4 years.
Full Definition
Leave Travel Allowance (LTA) is a salary component given for travel expenses during leave. The exemption under Section 10(5) is limited to the actual travel cost (airfare, rail, bus) for self and family, and can be claimed for a maximum of two journeys in any block of 4 calendar years. The current block is 2022-2025. LTA exemption only covers domestic travel within India — foreign travel is not eligible. Exemption is only under the old tax regime.
Related terms
More Income Tax terms
ITR (Income Tax Return)
Annual declaration filed with India's Income Tax Department reporting income, deductions and tax paid.
AY (Assessment Year)
The year in which income earned in the previous financial year is assessed and taxed.
FY (Financial Year)
The 12-month period from April 1 to March 31 during which income is earned and recorded.
PAN (Permanent Account Number)
Unique 10-character alphanumeric identifier issued by the Income Tax Department to every taxpayer.
TAN (Tax Deduction Account Number)
10-character number required by entities that deduct or collect tax at source (TDS/TCS).