Carry forward unclaimed LTA

Ask the Community Income Tax
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Hi,

Can an employee carry forward unclaimed LTA? e.g. one block year to another block year.

Please advise.

Thanks.

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For instance, the 4-year block for your LTA is 2018-2021. During that period, if you did not claim LTA or claimed it only once, then you will be allowed to carry forward one LTA to 2022 (first year of next block, i.e. 2022-25).

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Yes, employee can carry forward LTA into another block

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Hi @MadhuPR

As per the provisions under the Income-Tax Act, 1961 (Act), exemption for LTA is allowed to an employee for two travels undertaken within a block of four calendar years.

In case an employee is unable to claim the LTA exemption twice in the block of four years, he can carry forward one journey to the next block. However, the carried forward LTA eligibility has to be utilised in the first year of the next block.

Hope this helps :slight_smile:

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Please note that carry forward of such LTA to next block of year will require LTA Claim/Expenes to be incurred during the first calender year only on the next block of 2 years.

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