Petpooja Payroll is now Attendo
Book a Demo

LTA Calculator

Calculate your Leave Travel Allowance exemption under Section 10(5) of the Income Tax Act. Find how much of your LTA is tax-free based on travel mode, actual expenses, and block year claims.

Calculate LTA
Free forever No sign-up required Instant results

LTA Calculator

Free Tool
₹
Annual LTA component as per your salary structure
₹
Only travel fare counts (not hotel, food, or sightseeing)
Exemption limit depends on the mode of travel used
You can claim LTA exemption for 2 journeys per 4-year block
LTA Exemption
₹ —
LTA Received —
Taxable LTA —

* LTA exemption under Section 10(5) is available only under the old tax regime. New regime does not allow LTA exemption.

What is Leave Travel Allowance (LTA)?

Leave Travel Allowance (LTA), also called Leave Travel Concession (LTC), is a salary component that employers provide to cover domestic travel expenses incurred by employees during approved leave. Under Section 10(5) of the Income Tax Act, the travel fare portion of LTA is exempt from income tax, provided the employee actually undertakes the journey within India.

LTA is part of the overall CTC structure and is a popular tax-saving component in Indian payroll. Only the cost of travel (fare) is exempt. Expenses on accommodation, meals, shopping, and sightseeing are not covered under the exemption.

  • LTA covers domestic travel only. International trips do not qualify for exemption
  • Exemption is limited to the actual fare for the shortest route to the destination
  • Employees can claim exemption for themselves and their family (spouse, up to 2 children, dependent parents and siblings)

How is LTA Exemption Calculated?

LTA exemption is the lowest of three amounts: the LTA received from your employer, the actual travel expenses you incurred, or the maximum fare limit based on your travel mode.

LTA Exemption = Minimum of (LTA Received, Actual Fare, Eligible Fare Limit)

The eligible fare limit depends on how you travelled. For air travel, economy class airfare is the maximum. For rail journeys, AC first class fare is the cap. For destinations not connected by rail or air, the limit is either AC first class rail fare for the equivalent distance or the actual fare of a recognized public transport service. To understand how LTA fits into your total salary breakup, check the salary calculator.

Air Travel: Economy class airfare for the shortest route

Rail Travel: AC first class rail fare for the shortest route

Road (with rail link): AC first class rail fare for the equivalent distance

Road (no rail link): AC first class fare to the nearest railhead, or actual fare of recognized public transport

LTA Calculation with Example

Suppose you receive Rs 50,000 as LTA from your employer. You travel by air from Mumbai to Goa and spend Rs 35,000 on economy class tickets for your family.

LTA Received: Rs 50,000

Actual Travel Fare: Rs 35,000 (economy air tickets)

Eligible Fare Limit: Rs 35,000 (economy airfare, actual amount within limit)

LTA Exemption: Rs 35,000 (lowest of three values)

Taxable LTA: Rs 50,000 - Rs 35,000 = Rs 15,000

Tax Saved (30% slab): Rs 35,000 x 30% = Rs 10,500 + 4% cess = Rs 10,920

The remaining Rs 15,000 (LTA received minus exemption) gets added to your taxable income. If you had not travelled at all, the entire Rs 50,000 would be taxable. You can check your overall tax using the Old vs New Tax Regime Calculator to decide which regime saves you more.

LTA Block Year Rules Explained

The government defines fixed blocks of four calendar years for LTA claims. You can claim exemption for a maximum of two journeys in each block. Here are the recent and upcoming blocks:

  • 2018-2021 Block: This block expired on 31 December 2021. Unused claims from this block could be carried forward to 2022 (first year of the next block)
  • 2022-2025 Block (Current): You can claim LTA exemption for up to 2 journeys during this 4-year period. Claims must be made in the calendar year the journey is undertaken
  • 2026-2029 Block (Upcoming): The next block starts on 1 January 2026. Any one unclaimed journey from 2022-2025 can be carried forward to 2026, but it must be used in that first year
  • Carry forward rule: Only one unclaimed journey can be carried to the next block, and it must be availed in the first calendar year of that block. Tracking your leave encashment alongside LTA helps optimize your overall tax planning

How to Use This LTA Calculator

This free LTA calculator helps you find out how much of your Leave Travel Allowance is exempt from tax. Follow these steps:

  • Step 1: Enter the LTA amount you received from your employer as part of your annual salary
  • Step 2: Enter your actual travel expenses (fare only, not hotel or food costs)
  • Step 3: Select your mode of travel: Air (economy), Rail (AC first class), or Road/Other
  • Step 4: Choose how many LTA journeys you have already claimed in the current block (2022-2025)
  • Step 5: Click "Calculate LTA Exemption" to see your exempt amount, taxable LTA, and estimated tax savings

Tips to Maximize Your LTA Exemption

Here are practical ways to get the most tax benefit from your LTA component:

  • Plan both claims: Use both journeys in each 4-year block. Unused exemptions expire at the end of the block (with only one journey carry-forward allowed)
  • Keep actual tickets: Submit original boarding passes, train tickets, or bus tickets to your employer. Digital copies from airlines and IRCTC are accepted
  • Include family: Claim for your spouse, children (up to 2), and dependent parents/siblings. This increases the total eligible fare amount
  • Choose the right regime: LTA exemption is only available under the old tax regime. If you are on the new regime, switching to old just for LTA might not be worth it unless your total deductions under the old regime are substantial
  • Travel during leave: The journey must happen during your sanctioned leave period. Traveling on working days or public holidays without approved leave does not qualify
FAQ

Frequently Asked Questions

Common questions about LTA exemption answered clearly.

What is LTA or Leave Travel Allowance?
Leave Travel Allowance (LTA) is a component of salary that employers provide to employees to cover domestic travel expenses during leave. Under Section 10(5) of the Income Tax Act, LTA is exempt from tax to the extent of actual travel costs incurred for journeys within India. Only travel fare is exempt, not expenses on hotels, food, or sightseeing.
How many times can I claim LTA exemption?
LTA exemption can be claimed for two journeys in a block of four calendar years. The current block is 2022-2025, and the next block is 2026-2029. If you do not use one or both claims in a block, you can carry forward one unclaimed journey to the next block, but it must be used in the first calendar year of the next block.
What is the current LTA block year?
The current LTA block year is 2022-2025. The previous block was 2018-2021, and the next block will be 2026-2029. These blocks are fixed by the government and apply uniformly to all employees regardless of their date of joining. Use our TDS calculator to understand how LTA exemption reduces your TDS deduction.
What travel expenses are covered under LTA exemption?
Only the cost of travel (fare) for the shortest route to the destination is covered under LTA exemption. For air travel, economy class airfare is exempt. For rail travel, AC first class fare is the maximum exempt amount. For places not connected by rail, the fare is limited to AC first class rail fare for the distance or actual bus fare if a recognized transport service exists. Hotel stays, meals, sightseeing, and local transport are not covered.
Can I claim LTA for international travel?
No. LTA exemption is available only for travel within India. International travel expenses are not eligible for LTA tax exemption under Section 10(5). However, if you travel to an Indian destination and the journey originates from India, the domestic portion of your travel qualifies for exemption.
Who can be included in my LTA claim?
You can claim LTA exemption for yourself, your spouse, up to two children (born after 1 October 1998), and your dependent parents and siblings. For children born before 1 October 1998, there is no restriction on the number. The family members must travel together or separately during your period of leave.
Is LTA taxable if I don't travel?
Yes. If you receive LTA from your employer but do not actually travel, the entire LTA amount is added to your taxable income. The exemption is only available when you actually undertake the journey during an approved leave period. Simply receiving LTA as part of salary without travel makes it fully taxable. Check your HRA exemption as well, since HRA and LTA together form a significant part of tax-free salary.
How is LTA exemption calculated?
LTA exemption is the lower of three amounts: the LTA received from the employer, the actual travel expenses incurred, or the eligible fare limit based on travel mode (economy air fare for flights, AC first class for trains). The excess amount over the exemption is added to your taxable income.
Can I claim LTA under the new tax regime?
No. LTA exemption under Section 10(5) is not available if you opt for the new tax regime under Section 115BAC. The new regime offers lower tax rates but removes most exemptions and deductions including LTA, HRA, and Section 80C. You can only claim LTA exemption under the old tax regime. Use our PF calculator to evaluate all deductions available under the old regime.
What documents are needed to claim LTA?
You need to submit travel tickets or boarding passes as proof of journey, along with a declaration of leave availed during the travel period. Your employer may also ask for hotel bills (though not eligible for exemption) to verify the trip, and details of family members who travelled. Keep original tickets and invoices as the Income Tax Department may request them during assessment. Use an attendance and leave tracker to document your leave records properly.

Simplify your payroll and tax compliance.

Attendo (formerly Petpooja Payroll) automates salary calculations, tax deductions, and compliance for your entire team.

Explore Attendo

More free tools

See all
Cost Per Hire CalculatorCalculate the average cost of hiring a new employee in India. Enter internal and external recruiting costs to find your cost per hire. Free tool for HR teams and recruiters.Use tool →CTC CalculatorCalculate your in-hand salary from CTC instantly. Free CTC calculator with breakup of basic, HRA, PF, gratuity, and tax deductions. Trusted by 30,000+ businesses.Use tool →Employee Cost CalculatorCalculate true employee cost beyond CTC. Enter salary, PF, ESI, bonus, and other benefits to find the total cost of hiring an employee in India. Free tool for HR teams.Use tool →Employee Turnover Cost CalculatorCalculate the true cost of employee turnover for your business. Enter headcount, separations, average CTC, and hiring costs to estimate your annual turnover rate and total replacement cost. Free, no sign-up.Use tool →EPF Withdrawal CalculatorCalculate your EPF withdrawal amount, TDS deduction, and net payout with this free PF withdrawal calculator. Covers full withdrawal, partial advance, and EPFO 3.0 rules. Updated for FY 2026-27.Use tool →ESI/ESIC CalculatorCalculate ESI contributions for employees and employers instantly. Get monthly and annual ESIC breakup based on latest rates: 0.75% employee, 3.25% employer. Free online tool by Petpooja.Use tool →
Disclaimer: This calculator provides estimated results based on general Indian income tax rules for LTA exemption. It is not a substitute for professional tax or legal advice. Petpooja does not assume any legal liability for decisions made based on these calculations.
Petpooja Blog newsletter

Practical guides for your business, in your inbox.

New articles, free tools and templates for restaurants, retail and growing businesses. No spam, unsubscribe anytime.

By subscribing, you agree to receive updates from Petpooja. Read our Privacy Policy.

Reader settings
Theme
Text size
Free 20-minute demo

Book a Demo

Tell us about your business. Our team will call you within 24 hours.

Start typing to search for your city
Which product are you interested in?

By submitting, you agree to receive updates from Petpooja and accept our Privacy Policy.