Employee can claim LTA exemption 2 times in a block year (current block year is 2010-2013). Exemption cannot exceed the amount paid as LTA in the current year.
In your case if employee claim Rs.80000 in current FY 10-11 then entire amount will be exempted. Here no matter LTA is paid for last four years or 2 years.
For further clarification plz write me firstname.lastname@example.org
14th September 2010 From India, Delhi
In the F.Y. 10-11, employee will not have eligibility of Rs. 80000.
But if carry forwards 3 years LTA and claim the same in fourth year, he can get exemption of 80000 provided he has submitted proper proofs of travelling.
15th September 2010 From India, Mumbai
15th September 2010 From India, Lucknow