Understanding Leave Travel Allowance: What Are the Rules and Tax Benefits for Employees?

Leave Travel Allowance Rules Inquiry

Please advise me on the exact rules regarding the Leave Travel Allowance facility provided to employees. What is the quantum that can be offered every year? Also, I would like to know about the Income Tax exemption available to the employees.

I require this information urgently to formulate employee salaries for the year 2011-12.

Regards,
Ms. Tanya

Taxability of Leave Travel Allowance

For the taxability of Leave Travel Allowance, you can refer to Section 10(5) of The Income Tax Act, 1961, and its relevant Rule 2B of the Income Tax Rules. Let me know if I can help you any further.

Regards,