HR Terminology

Leave Travel Allowance

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  7. Leave Travel Allowance: Definition

Leave Travel Allowance (LTA) is a component of the salary package offered by employers to employees in India.

It is a tax exemption provided to employees to cover their travel expenses when they go on leave and travel with their family within the country. LTA is governed by the Income Tax Act and the exemption is available subject to certain conditions and limitations. The exemption is available for the actual travel cost incurred by the employee and their family for journeys within India.

LTA can be claimed for the travel expenses of the employee’s immediate family members, which typically includes the spouse and children. Some employers may extend the definition of family to include parents, siblings, and dependent relatives. If the employee does not claim the LTA during the specified block or fails to provide the necessary documents, the allowance becomes taxable.

FAQ

Eligibility criteria for claiming LTA vary across organizations. Generally, employees who have completed a certain period of service or are on regular payroll may be eligible. Specific eligibility details are usually outlined in the organization's HR policies.

LTA typically covers expenses related to transportation, such as airfare, train tickets, or bus fares. Additionally, expenses for accommodation during the leave period may also be included. However, it's important to review your organization's policy to understand the specific expenses covered.

The frequency of claiming LTA varies depending on the organization's policy. Some organizations may allow employees to claim LTA once a year, while others may have different frequencies such as twice a block of four years. It is essential to refer to the company's HR policies for clarity on this matter.

The process for claiming LTA typically involves submitting relevant travel documents, such as tickets, boarding passes, and hotel receipts, along with a formal reimbursement claim to the HR or finance department. It is important to adhere to the specified procedures outlined by the organization to ensure timely processing of the reimbursement.

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