LTA Exemption Calculator

Leave Travel Allowance Exemption Calculator

Updated · GetHirePlus team

Find out how much of your LTA is tax-free in tax year 2026-27 (FY 2026-27). Current block: calendar years 2026 to 2029. The rule is Section 10(5) in the 1961 Act numbering.

This calculator gives the tax-free part of your Leave Travel Allowance under the old regime. Formula: exempt LTA is the lower of the LTA your employer pays and the eligible travel fare (economy airfare, AC first class rail fare or the public transport fare, by the shortest route within India), for up to two journeys in the 2026-2029 block. The rest is taxable salary.

LTA exemption is available only under the Old Tax Regime
Annual LTA component in your CTC (in rupees)
Round-trip fares for you and eligible family, capped at the class limit for the mode you pick below
Current block: 2026-2029 (max 2 journeys)
Used to estimate tax saved (includes 4% health and education cess)

Sample values shown (Rs 50,000 LTA, Rs 35,000 of eligible fares, 20% slab). Change them to get your own number.

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LTA Exempt
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LTA Taxable
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Tax Saved

LTA Exemption: Rules and Calculation Guide

Leave Travel Allowance (LTA) is a salary component that covers the cost of travel for a domestic vacation. It was exempt under Section 10(5) of the Income-tax Act, 1961, and the exemption continues for tax year 2026-27 under the Income-tax Act, 2025, which replaced the 1961 Act from 1 April 2026. We use the 1961 section number on this page because we could not confirm the new section number against an official mapping; check the official section navigator.

The Basic Formula

LTA exempt = Minimum of (eligible travel fare actually incurred, LTA received from employer)

Any LTA received over and above the eligible exemption is treated as taxable salary in your hands.

Travel Mode Limits

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Air Travel

Exemption is capped at the economy class fare of the national carrier by the shortest route to the destination. If you flew a different airline, the cap is still that economy fare, and the lower of the cap and what you paid counts.

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Rail Travel

Exemption is capped at AC First Class (1A) fare by the shortest route. If you travelled by a lower class, the actual fare is taken. If you travelled business class or flew instead of rail, the AC First Class limit applies.

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Road (No Rail or Air)

If the place is not connected by rail, the cap is the first class or deluxe class fare of recognised public transport by the shortest route. Where no recognised public transport exists either, the cap is the AC first class rail fare for the same distance by the shortest route.

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What is NOT Covered

Hotels, food, sightseeing, local conveyance at destination, cab/auto to the airport or station, and foreign travel are all excluded. Only actual point-to-point travel fares for eligible family members count.

Worked example (the sample values above)

Your employer pays Rs 50,000 of LTA in the year. You fly economy with your spouse from Delhi to Kochi and back, and the eligible economy fares come to Rs 35,000. This is your first journey in the 2026-2029 block and you are in the 20% slab under the old regime.

  1. Exempt LTA = lower of Rs 50,000 and Rs 35,000 = Rs 35,000.
  2. Taxable LTA = Rs 50,000 − Rs 35,000 = Rs 15,000, added to salary.
  3. Tax saved = Rs 35,000 × 20% × 1.04 (cess) = Rs 7,280.
  4. One journey is left in the block for 2026 to 2029.

Block Years and Journey Limits

The government defines 4-year calendar blocks for LTA. You can claim exemption for a maximum of 2 journeys per block.

Block PeriodCalendar YearsMax JourneysStatus
2018 to 2021 Jan 2018 to Dec 2021 2 Closed
2022 to 2025 Jan 2022 to Dec 2025 2 Closed (carryover to Jan-Dec 2026)
2026 to 2029 Jan 2026 to Dec 2029 2 Current Block

Carryover Rule

If you did not use one or both of your LTA journeys in the 2022-2025 block, you can carry forward ONE unclaimed journey into the new 2026-2029 block. However, this carried-forward journey must be completed by December 31, 2026. If not used in 2026, the carryover lapses permanently.

This means in calendar year 2026, you could theoretically claim up to 3 journeys: 1 carried forward from 2022-2025, plus 2 from the new 2026-2029 block (subject to your employer's leave and reimbursement policy).

Eligible Family Members

Family members whose travel costs qualify for LTA exemption are:

Parents who are not dependent on you (for example, if they earn their own income) do not qualify. There is no restriction on the number of children born before October 1, 1998.

Old Regime Only

LTA exemption is available only to taxpayers who opt for the old tax regime. Under the new regime (Section 202 of the 2025 Act, earlier Section 115BAC, the default since FY 2023-24), LTA received from the employer is fully included in taxable salary.

How to Claim LTA

Submit the travel proof (tickets, boarding passes) with your declaration to your HR or payroll team before your company's year-end deadline (typically February or March). From tax year 2026-27 the declaration is Form 124, which replaced Form 12BB. Your employer then reduces your TDS. If you miss the window, some taxpayers claim the exemption in the return instead, but expect to be asked for proof and check with a tax professional first.

If you notice any error in the formulas or rules on this page, please write to [email protected] and we will correct it promptly.

Frequently Asked Questions

What is LTA (Leave Travel Allowance)?
LTA is a salary component that reimburses the cost of domestic travel for a vacation. The reimbursement, up to the eligible limit, is exempt from income tax for employees on the old tax regime (Section 10(5) in the 1961 Act numbering; the exemption continues under the Income-tax Act, 2025 for tax year 2026-27).
How many journeys can I claim in a block year?
You can claim exemption for a maximum of 2 journeys in each 4-year block. The current block runs from January 1, 2026 to December 31, 2029. Unused journeys (except one carryover) are forfeited at the end of the block.
Is LTA available under the new tax regime?
No. LTA exemption is only available under the old tax regime. If you opt for the new regime (which is the default), the entire LTA amount you receive from your employer is treated as part of your taxable salary.
Does LTA cover hotel stay and food at the destination?
No. The exemption is strictly limited to point-to-point travel costs (flight or train tickets). Hotel accommodation, food, local sightseeing, local transport at the destination, and similar expenses do not qualify for LTA exemption.
What if my employer gives me LTA but I did not travel?
If you receive LTA but did not actually travel, the entire amount is taxable as salary income. The exemption requires actual travel with supporting documentation. There is no exemption on unclaimed LTA unless you carry it forward to the next block (subject to the rules described above).
Can I claim LTA for international travel?
No. LTA exemption applies only to travel within India. If your journey involves international legs, only the Indian portion of the trip may be considered, and only if you travelled on a domestic segment. The destination must be within India.
What documents do I need to claim LTA?
Typically you need: original air or rail tickets (booking confirmation and boarding passes for air), travel receipts, and a declaration form provided by your employer. Some employers also ask for hotel bookings as proof that the travel actually occurred. Requirements vary by employer, so check with your HR team.
My employer gives LTA monthly in salary. Is it still exempt?
The exemption depends on actual travel, not on how the employer structures the payment. Even if LTA is paid monthly as part of your salary, you can claim exemption only when you actually travel and submit proof. The unclaimed portion remains taxable in the year it was received.

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Disclaimer: Formulas based on the LTA exemption (Section 10(5) of the 1961 Act, carried into the Income-tax Act, 2025). Current block year 2026-2029. For personalised tax advice, consult a chartered accountant.