Leave Travel Allowance Carry Forward / Upper Limit / Flexible Benefit Plan

Hi everyone,

I have a question- If I don’t use my eligible LTA even once in the block of 04 years, can I carry forward this to next year block and claim it in Income Tax there?

please advise.

Regards,
Anu

6 Likes

Hi,

Below link for all LTA related queries with the most lucid explanation:

Hope it helps! :slight_smile:

9 Likes

Hi Anu,

Adding along to what @VallariD suggested,

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.

6 Likes

Hi All,

I checked everywhere but couldn’t find.
Does anyone know the upper limit for LTA exemption?

-Vallari

2 Likes

Hi @VallariD

LTA is a BoB (Bouquet of Benefits) offered by the companies to the employees. There are various BoB that a company can offer and the total limit of all these BoB is decided by the company and based on the total limit this is allocated in various buckets to employees.

Example: A company says 30% of CTC as allowances and now divides that 30% across various BoB offered.

So LTA on it’s own doesn’t have any upper limit under Section 10(5).

3 Likes

Hi @Dinesh

Thanks for the help!

Regards
Vallari

2 Likes

Thanks Dinesh on LTA info :blush:

Regards,

2 Likes
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