What is LTA?
LTA full form is Leave Travel Allowance. It is a tax exemption for an allowance granted to an employee by his or her employer for travel expenditures while on leave. Leave Travel Allowance is subject to a number of requirements. An employee must organize their trip around the goal of successfully obtaining an LTA exemption. The Indian income tax administration has outlined several criteria and procedures for obtaining exemptions under the LTA.
Conditions For Claiming LTA
- To be eligible for the LTA exemption, you must make the trip.
- Only domestic travel qualifies for the exemption. LTA does not cover overseas travel.
- The travel exemption is applicable for the employee alone or with his family, which includes the employee’s spouse, children, completely or primarily dependent parents, siblings, and sisters. Furthermore, no more than two children of an employee born after October 1, 1998, are eligible for this exemption. There are no restrictions for children born before October 1, 1998. Furthermore, this restriction does not apply to multiple births on a second occasion after having one kid.