0 hidden charges. 0 forex

LTA in Salary: What is it and How to Claim?

Reviewed by
Created on
June 2, 2023


What’s Inside

Ever felt the need for a break from work, wishing for a vacation?

Travelling has always been popular among Indian employees. And to be honest, travelling can be an expensive affair.

So, many companies in India offer a fixed amount to assist with their travel expenses. Leave Travel Allowance (LTA) is a tax-free allowance that comes as a component of your salary.

What are you waiting for?

Start packing your bags.

But wait! First, you must know what exactly LTA is and how to claim your travel expenses.

Leave Travel Allowance: Knowing The Fundamentals

Employees in India are given an allowance called LTA to help cover their within-country travel expenses. Employees who take a break from work to travel with their families can claim the tax-free component.

Further, it is governed by the IT Act of India and is subject to exemption under certain conditions. For LTA, the government follows a period different from the financial year, called a block year. A block year consists of 4 years, currently 2022-2025.

Moreover, an employee can only claim this twice within a four-year block period. The expenses can include the ones incurred during travel by rail, road, or air.

Eligibility for LTA

Both private and public sector employees are covered under the LTA scheme.

Also, LTA is generally a part of your salary package, with the eligibility criteria varying across employers. Only domestic travel is covered within LTA but not international travel.

How to Claim LTA?

The process of claiming LTA (Leave Travel Allowance) varies depending on the employer. Each employer sets a specific deadline for employees to claim LTA. Besides this, the requirements for claiming a leave travel allowance are:

  • You can only claim the actual amount spent by you during your travel, irrespective of the sanctioned LTA amount
  • Only travel under the categories of rail, air and bus is covered. You cannot claim LTA on cab travels
  • You can claim an LTA only on expenses you and your family incurred, which includes spouses, dependent parents, sisters, and brothers
  • You must support your travel expenses with documentary proof, such as tickets, passes, etc.

The claimable amount differs across employers. You can always talk to the HR of your company to understand this component better. You can also find the allotted LTA amount in your offer letter and salary slip.

Can Unclaimed LTA be Carry Forwarded to Next Block Year?

If an employee hasn't used the exemption for one or two trips in any of the four-year blocks, they can carry over the unused exemption to the next block. However, they must utilise this benefit during the first calendar year of the subsequent block.

Let's say you have only claimed LTA once in the previous block year. Subsequently, in the current block, you can claim 3 journeys, subject to making the first claim in the first calendar year. 

Your Search for the Best Salary Account Ends Here!

Did you know you can earn benefits of up to ₹30,000 with Fi's Salary Plan?

All you need to do is open a Salary account on Fi app. You can get:

  • Flat 2% cashback on spends
  • ₹500 Welcome Amazon Voucher
  • 2x health insurance top-up
  • 4x Fi-Coins on spends

And many more offers and exclusive benefits.


Leave Travel Allowance (LTA) provides Indian employees with a tax-free allowance to assist with their within-country travel expenses. It is an attractive benefit offered by many companies to support employees in taking breaks and enjoying vacations. By understanding the fundamentals of LTA, employees can make the most of this allowance. Remember to keep track of the block years and utilise any unused exemptions before the first calendar year of the subsequent block. So, if you're in need of a well-deserved getaway, don't hold back and take advantage of your LTA benefits. Happy travels!

Frequently Asked Questions

1. What is the LTA percentage in salary?

The LTA percentage depends on your salary package or the cost to the company. Generally, it is anywhere up to 15% of your taxable income.

2. Is LTA included in my in-hand salary?

Since LTA is a component of your salary structure, most employers include LTA in your in-hand salary. But we suggest you connect with your HR to understand this better.


Fi Money is not a bank; it offers banking services through licensed partners and investment services through epiFi Wealth Pvt. Ltd. and its partners. This post is for information only and is not professional financial advice.
Share this article
Copied Link!
Work & Money
LTA in Salary: What is it and How to Claim?


View similar articles in
Work & Money
Get the Fi app