Leave Travel Allowance: The financial year 2022-23 is at its last stage. In such a situation, people are looking for different ways to avoid tax on income. People are looking for different ways to get tax exemption. Do you know that you can also get tax exemption from Leave Travel Allowance (LTA). The company bears the cost of travel tickets of its employees through LTA. This also covers the cost of his family’s tickets. You can claim tax exemption on domestic travel through LTA. However, it does not include international trips.
Tax exemption on this allowance is available only on limited journeys. You can’t get it every year. In LTA, tax exemption can be availed only on ticket expenses. This may include the cost of train, plane or road tickets. The expenses of hotel rent, food or shopping etc. are not included in this.
How many times can I get exemption on LTA?
You can take the benefit of Leave Travel Allowance only twice in four years. In this, you can get tax exemption on the cost of ticket for the journey done within the country’s border. The provision of tax exemption on LTA has been made under section 10(5) of the Income Tax Act, 1961. If both husband and wife are employed, they can optionally avail tax exemption on LTA every year.
Who gets the benefit of LTA in the family?
Only husband, wife and two children can get the benefit of this allowance. Parents dependent on employed persons can also get its benefit. If your siblings are dependent on you, then they can also get benefit from it. If they are married and working somewhere then they will not get the benefit.
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