Tax
LTA
Also known as: Leave Travel Allowance, Travel Allowance
Leave Travel Allowance - Tax-exempt allowance for domestic travel expenses during leave period.
Detailed Explanation
LTA (Leave Travel Allowance) is a component of salary that provides tax exemption for travel expenses incurred during leave for vacation with family within India. The exemption is available twice in a block of 4 years. Only travel expenses (transport cost) are exempt, not boarding, lodging, or other expenses. Unused LTA from one block can be carried forward to the first year of next block.