LTA Exemption — Leave Travel Allowance Under Income-tax Act

Updated: 3 June 2026

LTA (Leave Travel Allowance) exemption is available to salaried employees under Section 10(5) of the Income-tax Act. The employer grants LTA for actual travel expenses incurred for domestic journeys. Only transport costs (flight, train, or bus tickets) are covered — hotel stays, food, and sightseeing are not eligible.

2 journeys

LTA exemption is available for 2 journeys in every block of 4 calendar years. The current block is January 2022 – December 2025. The next block is January 2026 – December 2029.

Key Rules at a Glance

Old regime only: LTA exemption under Section 10(5) is available only if you opt for the old (optional) tax regime. It is not available under the new (default) regime applicable from FY 2023-24 onwards.

Domestic travel only: The destination must be within India. Travel outside India does not qualify for LTA exemption under any provision.

Nearest route principle: The exemption is limited to the actual fare for the shortest or nearest practicable route between the place of origin and destination. Roundabout routes inflate the claim but only the shortest-route cost is exempt.

Family coverage: LTA covers the employee, spouse, children (maximum 2 children born after 1 October 1998 — no restriction on children born before that date), and dependent parents, brothers, and sisters.

Eligible Transport Modes and Exemption Amount

Mode of Travel	Eligible Exemption Amount	Condition
Air travel	Economy class air fare (shortest route)	National carrier fare used as benchmark
Rail travel (connected by rail)	First class AC rail fare (shortest route)	AC First Class fare of the shortest route
Rail travel (no direct rail link)	First class AC rail fare to nearest rail station, then road travel	Journey must connect to nearest rail head
Road travel (government transport)	Actual government bus fare (shortest route)	Must use recognised state/central government bus
Road travel (private car / taxi)	First class AC rail fare equivalent for that route	No rail link exists; AC First Class rail is the cap

LTA Block Years

Block	Period	Max Journeys	Carryover to Next Block?
Block 9	Jan 2014 – Dec 2017	2	1 journey allowed
Block 10	Jan 2018 – Dec 2021	2	1 journey allowed
Block 11 (current)	Jan 2022 – Dec 2025	2	1 journey allowed (to 2026)
Block 12	Jan 2026 – Dec 2029	2 + possible carryover	1 journey allowed

Carryover of Unused LTA Journey

If you have used only 1 of the 2 allowed journeys in a block, you may carry over 1 unused journey to the next block. However, this carried-over journey must be used in the first calendar year of the next block. For the current transition (2022-25 → 2026-29), the carryover journey must be utilised in calendar year 2026.

LTA vs HRA — Key Differences

Feature	LTA	HRA
Section	Section 10(5)	Section 10(13A)
Purpose	Travel expenses within India	House rent paid for residence
Frequency	2 journeys per 4-year block	Monthly, throughout the year
Documentation	Travel tickets, boarding passes	Rent receipts, landlord PAN (if rent > ₹1L/year)
New regime	Not available	Not available
Self-employed	Not available	Not available (only salaried)

What LTA Does NOT Cover

The LTA exemption is strictly limited to transport costs for the journey. The following are explicitly excluded:

Hotel accommodation and lodging charges
Food, meals, and beverages during travel
Sightseeing, entertainment, or leisure activities
Local conveyance at the destination
Visa fees or travel insurance (not applicable for domestic travel but worth noting)
Travel expenses for international portions of any journey

Frequently Asked Questions

How many times can I claim LTA in a year?

LTA exemption is available for a maximum of 2 journeys in a block of 4 calendar years. There is no per-year limit — you can use both journeys in the same year if you wish, but that exhausts your allowance for the entire block.

Can my spouse and children travel without me and I still claim LTA?

No. LTA is available for the employee and family members travelling together or the employee travelling alone. If only the spouse and/or children travel without the employee, no exemption is available for that journey.

Is LTA available for international travel?

No. LTA covers domestic travel only — the destination must be within India. International travel expenses are not eligible for LTA exemption under Section 10(5) of the Income-tax Act.

Is LTA available under the new tax regime?

No. LTA exemption under Section 10(5) is not available if you opt for the new tax regime (default regime from FY 2023-24 onwards). It is available only under the old (optional) tax regime.

What happens if I do not use one LTA journey in the current block?

You can carry forward one unused journey from the current block to the next block. However, this carryover journey must be used in the first calendar year of the next block (i.e., the first year of 2026-29 block). After utilisation, the remaining journeys in the new block continue as normal.

What proof is required to claim LTA?

You must submit original travel tickets (air, rail, or bus), boarding passes, and a travel declaration to your employer. The employer collects proofs before granting the LTA exemption in Form 16. Income-tax authorities may ask for these documents during scrutiny.

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Lta Exemption Near You

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