Tuesday, April 15, 2008

Seven things you should know about LTA (Leave Travel Allowance)

  • LTA can be availed twice in a block of 4 years. The block is defined by the government. The current block is 2006 – 2009 and is based on calendar year

  • Only the travel costs (air, rail or public transport, dependent on the employer) can be exempted under LTA

  • If LTA is not claimed in a particular block of 4 years, ‘one’ can be claimed in the ‘first year’ of the next block of 4 years

  • LTA is valid only for travel within India

  • Two LTA claims cant be made in the same year for travels made in the same year

  • If your spouse also has LTA, then both of you can claim two LTAs each in a block of 4 years. So that each year you can have one LTA claim

  • LTA can be claimed for travel done by self, spouse, children, parents and siblings dependent on self. Only thing is self (person who is claiming LTA) has to be present in the travel
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