What is LTA (Leave Travel Allowance)?
LTA is an allowance paid by an employer to an employee toward travel expenses while on leave with their family within India. It is exempt from tax under Section 10(5) of the Income Tax Act, subject to conditions and frequency limits.
Last updated: June 2026Definition
LTA (Leave Travel Allowance) reimburses an employee for travel expenses incurred while on leave, for themselves and immediate family. Only the travel cost (not lodging or food) is reimbursable, and only domestic travel qualifies for the exemption.
LTA exemption rule (Section 10(5))
- Available twice in a block of 4 calendar years. Current block: 2022–2025.
- Covers travel by air (economy), rail (AC first class) or road (within prescribed limits).
- Only the employee's spouse, children (up to 2), and dependent parents/siblings qualify.
- Travel must actually occur — vouchers, tickets and boarding passes are required as proof.
- Available only under the old tax regime.
Carryforward and FBP linkage
Unused LTA from one block can carry forward to the first journey in the next block. Many employers route LTA through their FBP (Flexible Benefit Plan) so the annual amount can be claimed against proofs or paid taxable if unused.
LTA in Texlaculture HRMS
Texlaculture lets employees upload travel proofs to a structured claim form, verifies them against LTA rules, and adjusts TDS for the year accordingly. The unused LTA balance auto-rolls into the next FBP cycle.
Process LTA claims with proof workflow
Texlaculture handles LTA submission, approval and tax treatment within the payroll cycle.
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