TaxTMI 
TaxTMI 
Leave Travel Allowance (LTA) - (New) Schedule III (Table: Sl. No. 8) / (Old) Section 10(5)
X X X X Extracts X X X X
X X X X Extracts X X X X
....ce in India; • (ii) After retirement / termination:- from his employer or former employer for himself and his family, in connection with his proceeding to any place in India after retirement from service or after the termination of his service; Meaning of Family • The expression "family" in relation to an individual, means- • (i) the spouse and children (up to 2 surviving children if born on or after 1-10-1998) of the individual; and • (ii) the parents, brothers and sisters of the individual or any of them, wholly or mainly dependent on the individual. (b) such sum is subject to such conditions as prescribed under rule 278 (including conditions as to number of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ecific rates have been prescribed either by the Directorate of Transport of the concerned State or of any neighbouring State, • an amount calculated at the rate of Rs.30 per kilometre, for the distance of the journey by the shortest route shall be admissible. (2) Frequency of Exemption [ Rule 278(2) ] • The exemption shall be available to an individual in respect of two journeys performed in a block of four calendar years commencing from the calendar year 2022. (3) Carry Forward Benefit [ Rule 278(3) ] • Where such travel concession or assistance is not availed of by the individual during any such block of four calendar years, an amount in respect of the value....
X X X X Extracts X X X X
X X X X Extracts X X X X
....loyee and his family, subject to conditions. • LTA is the remuneration paid by an employer for Employee's travel in the country, when he is on leave with the family or alone. • LTA exemption can be claimed where the employer provides LTA to employee for leave to any place in India taken by the employee and their family. • Such exemption is limited to the extent of actual travel costs incurred by the employee. The total cost of the holidays is not covered, only the travelling cost is covered. • For example, where an employer provides LTA of 25,000, but an employee spends only 20,000 on the travel cost, then the exemption is limited to only 20,000. • Only domestic travel is cove....
X X X X Extracts X X X X
X X X X Extracts X X X X
....to different places in a single vacation, the exemption can only be availed for the travel cost eligible from the place of origin to the farthest place in the vacation by the shortest possible route. • Amount Exempted: • Journey performed by Air - Economy Air fare of National carrier by the shortest route or actual expenses, whichever is less. • Journey performed by Rail - A.C. first class rail fare by shortest route or actual expenses, whichever is less. • Place of origin and destination place of journey connected by rail but journey performed by other mode of transport - A.C. first class rail fare by shortest route or actual expenses, whichever is less. • Place of origin & d....