LTA (Leave travel allowance), LTC (Leave Travel Concession) & LFC (Leave fare concession) are the types of allowance which will be provided by the employer.
There is no difference in between LTA and LTC however LTA means it is paid as a allowance and LTC is a concession which is paid by the employer for the journey which he undertake as pleasure trip with his dependants.
The benefit of the employees is they can avail fare charges incurred for the journey which will be reimbursed by the employer..
27th March 2018 From India, Hyderabad
For employees, the benefit of LTA is that, upon submission of the Travel tickets the LTA allowance is exempted from tax and hence, employees can save tax.
CTC has various components which benefits employees to minimize the tax paying to the government. For example, HRA and Mobile or other reimbursements.
Thus, LTA is a component which can be exempted from tax provided if employee actually travel and submit the bills.
There are few points to be noticed
Organizations would validate the leave tracker and the travel tickets that you submit to avoid any duplication of bills.
Travel should be domestic and international travels are not covered under LTA
Only travel fares can be claimed, food and other expenses are not part of LTA
LTA comes in blocks, once in 4 years.
If, an employee have not traveled and didn't submit the travel tickets, this LTA allowance is subjected to income tax and the tax will be deducted per employee's tax slab.
Not a good benefit though, not every employee will travel and also the block limitations doesn't seems a great choice for every year.
27th March 2018 From India, Bengaluru