LTA (Leave Travel Allowance)

LTA covers the domestic travel expenses of an employee and their immediate family while on leave, exempt from tax under Section 10(5) of the Income Tax Act. It only covers travel costs — flights, trains, buses — not accommodation or food during the trip.

The exemption can be claimed for two journeys within a block of four calendar years, and only under the Old Tax Regime — LTA loses its exemption benefit if the employee opts for the New Tax Regime. The current block runs 2026–2029 (the previous 2022–2025 block ended 31 December 2025); one unavailed journey from the prior block can be carried into the first year of the new one.