The amount of exemption depends upon the mode of travel, and it is allowed only towards the travel fare, and not for boarding and lodging. It is allowed twice in a block of four calendar years.
The current block is 2014-17. So, for the period 2014-17 one can claim this exemption for any two occasions.
FAQ On Leave Travel Allowance (LTA) for exemption under section 10(5) of Income tax Act
The LTA exemption is available only for family accompanying the recipient of LTA / employee receiving LTA
Employee (receiving LTA and claiming the same) must be traveling with his family on the journey to claim LTA, otherwise the journey will not be eligible for exemption.
It means if your family is travelling without you, then they you will not be eligible for claiming LTA benefit.
Only the cost of travel by shortest distance is covered.
It means following are not allowed:
a) Boarding and lodging charges.
b) Food or any recreation charges.
What is block of year concept?
The LTA / LTC tax exemption can be claimed only twice in a block of 4 years.
These blocks of 4 years are predefined by the government. These are:
2002 – 2005
2006 – 2009
2010 – 2013
2014 – 2017
2018 – 2021
And so on. The current block is 2014 – 2017.
(these years are calendar years, and not financial years.)
If you have not availed LTA in one block, can you carry forward LTA benefit
Yes, The exemption doesn’t lapse – it can be carried forward to the next block of 4 years.
The only condition in this case is that the exemption has to be availed in the very first year of this subsequent block.
Can Husband and wife both claim LTA benefit
Yes, both the Husband and wife can effectively claim LTA benefit 4 times in block of four years . ie two by husband and two by wife.
What document is required as proof of travel?
Tickets like – railway ticket and Airlines ticket( with boarding pass) is valid proof for claiming LTA benefit