Understanding Leave Travel Allowance: Who Qualifies and What Are the Salary Details?

I need clarification on what is meant by LTA and to whom it is applicable. Is it only applicable to the manager cadre and executive cadre? Can I know the salary particulars for those to whom the Leave Travel Allowance is applicable?

With Regards,

B. Sreenivasa Rao

LTA - Leave Travel Allowance

Generally, everyone can be entitled to the same. If the salary falls into a taxable bracket, then the LTA can be used as a component of the salary to save on taxes.

Trust this will help you!

Regards

There is no minimum salary requirement to be eligible for LTA. However, as rightly pointed out, it is usually used to save income tax for higher-salaried employees.

To elaborate more on LTA:
- An employee is eligible for LTA after their probation period.
- Normally, LTA can be applied after 1 year, as employees' earned leaves/privilege leaves get credited. The minimum leaves to take for LTA are 6.
- If someone leaves without availing LTA, even though eligible, their due amount is given in the full and final settlement.

Regards,
Vaishalee

Leave Travel Allowance (LTA) and Tax Exemption

No limit is specified in IT rules. It is mainly for tax saving. Air/train/bus tickets are considered for tax exemption on the shortest routes. In a block year of 4, one can claim tax exemption twice.

Regards,
Pon

LTA is part of CTC for tax saving. In a block year of 4, one can claim tax exemption twice. Normally, LTA can be applied after 1 year, as employees' earned leaves / privilege leaves get credited. The minimum number of leaves to take for LTA is 4.