Lta

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Sonal

Sonal (Querist)
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22 July 2013 What is ceiling limit on LTA?

CA Pooja Agarwal

CA Pooja Agarwal (Expert)
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22 July 2013 Exemption would be limited to actual expenditure incurred for journey.

Income Tax exemption on Leave Travel Allowance (LTA) is allowed with reference to mode of Journey as mentioned below:

Journey by Air: Maximum Economy fair of the National carrier by shortest route to the place of destination.
Journey by Rail: Maximum First Class A.C. rail fare by shortest route to the place of destination.
Journey by recognised public transport :Where a recognised public transport is available, maximum 1st Class or deluxe class fair by shortest route to the place of destination where there is the absence of connectivity by rail
Journey by any other mode: An amount equal to first class rail fare by shortest route to the place of destination, in absence of public transport system as if journey had been performed by rail way.
Important Points:

LTA Exemption is permissible only with respect to fare and not for any other expenses.
Family for LTA purpose include the spouse and children of employee. Parents, sisters and brothers of who are mainly or wholly dependent upon employee
LTA will not be allowed for two children of employee after 1.10.1998. Exception would be only in case children born before 1.10.1998 and also in case of multiple births after one child.