GUIDESMONEY MATTERS
LTA in Salary: What is Leave Travel Allowance and How to Claim It
5 MIN • 
LAST EDITED BY SAYAN DAS ON SEPTEMBER 26, 2025.
LAST EDITED BY SAYAN DAS ON SEPTEMBER 26, 2025.
GUIDES LAST EDITED BY SAYAN DAS ON SEPTEMBER 26, 2025.
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.
LTA in salary, or Leave Travel Allowance, is a component of your salary package that reimburses expenses incurred on domestic travel with your family, subject to income tax exemptions under Section 10(5) of the Income Tax Act.
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.
LTA can be claimed by salaried employees who receive Leave Travel Allowance as part of their salary package. It covers travel expenses for the employee, spouse, children, and dependent parents or siblings within India.
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:
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.
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.
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!
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.
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.
LTA full form in salary is Leave Travel Allowance. It is a salary component that reimburses employees for eligible travel expenses within India.
There is no fixed monetary exemption limit for LTA. The exemption is restricted to the actual travel fare (air, rail, or bus) for up to two journeys in a block of four years, as defined by the Income Tax Act.
