Traveling from Mumbai to Bengaluru in My Own Car: Can I Claim LTC and How?

I have traveled from Mumbai to Bengaluru and adjoining areas in my self-driven car. Can I claim LTC for the same? If so, how do I do that.

Understanding LTC Claims and Income Tax Exemptions

LTC claims are not governed by any statute but are based on your company's policy and the rules and regulations therein. Therefore, this forum cannot provide specific details about your company's policy. However, LTC claims entitle you to an Income Tax exemption twice in a block of four years, subject to certain conditions and rules. You need to produce bills for your travel expenses as follows:

- If you travel by air, an economy class fare of the airlines is allowed as an exemption.
- If you do not travel by air and the places are connected by rail, AC First Class Rail fare is granted as an exemption.
- If you do not travel by rail or air and the places are also not connected by rail or air, where a recognized mode of transport is available, the First or Deluxe Class fare of such transport is allowed as an exemption.
- Where a recognized form of transportation is not available, an amount equal to the AC First Class Rail fare (considering the distance of the shortest route) is allowed as an exemption.

Under the circumstances, you are not entitled to an Income Tax exemption on your travel from Mumbai to Bengaluru and adjoining areas by your self-driven car.

Most governments have stopped LTC by private cars for employees due to fraudulent claims, etc. If you are a government/PSU employee, check out your LTC rules.

As far as private companies are concerned, it varies from firm to firm.

Dear Friend,

The claim for LTC does not fall under any specific act or laws, but rather is governed by the policy of the establishment. As per your clarification, you should check with your HR department. They will inform you about how they reimburse the amount you are entitled to.

The LTC policy varies among establishments. In my case, my establishment now includes my share of LTC in my monthly salary. Previously, it was paid annually against five earned leaves.