Is LTA or LTC automatically payable when leave is sanctioned?

No. Leave approval and LTA/LTC entitlement are separate matters. Payment or reimbursement depends on the employer's policy, service rules and applicable conditions.

What is the income-tax provision for LTA or LTC?

Section 10(5) of the Income-tax Act, 1961, read with Rule 2B of the Income-tax Rules, 1962, governs the exemption for eligible leave travel concession or assistance, subject to prescribed conditions.

Is Section 10(5) LTA exemption available under the new tax regime?

No. The Section 10(5) leave travel concession exemption is not available when income is computed under the default new tax regime under Section 115BAC.

Leave Application for Home Town Visit and LTA/LTC Claim

Use this updated format to request leave for a home town or family visit and, where you are eligible under your employer's policy or service rules, to request Leave Travel Allowance (LTA) or Leave Travel Concession (LTC).

Important: Sanction of leave and entitlement to LTA/LTC are separate. For income-tax purposes, an eligible LTA/LTC exemption is governed by Section 10(5) of the Income-tax Act, 1961 and Rule 2B of the Income-tax Rules, 1962. The Section 10(5) exemption is not available under the default new tax regime under Section 115BAC.

Updated Leave Application Format

Date: ____________

To
The Manager / HR Department
________________________ Company / Organisation
Address: ________________________

Subject: Application for leave to visit home town and request for LTA/LTC

Dear Sir/Madam,

I request leave from ____________ to ____________ for ____ days to visit my home town / attend a family function. I propose to leave on ____________ and resume duty on ____________.

I also request permission to avail / claim Leave Travel Allowance (LTA) or Leave Travel Concession (LTC), as applicable, for the proposed journey in accordance with the company's policy, service rules and other applicable conditions. The proposed destination is ________________________, and the family members travelling with me, if any, are ________________________.

I will submit the required travel tickets, invoices, declarations and other supporting documents, wherever required for processing the claim.

I therefore request you to kindly sanction the above leave and approve my LTA/LTC request, subject to my eligibility and the applicable rules.

Thank you.

Yours faithfully,

Name: ________________________
Employee ID: ________________
Department: ________________
Contact: ____________________

Documents commonly required

Approved leave request or leave application.
Travel tickets, boarding passes or other admissible proof of travel.
LTA/LTC declaration or claim form prescribed by the employer or department.
Details of eligible family members travelling, where the claim includes family travel.
Any additional documents required by the employer's policy or applicable service rules.

Current legal and tax position in India

Section 10(5) and Rule 2B

Section 10(5) provides a tax exemption for qualifying travel concession or assistance received or due from an employer or former employer for eligible travel in India. Rule 2B prescribes the conditions and limits, including the number of journeys and fare-based ceilings.

Four-year block

The exemption is generally available for two journeys in a block of four calendar years, subject to Rule 2B. Based on the statutory sequence of four-year blocks beginning in 1986, the current block is 2026-2029.

Actual travel is required

The exemption is linked to actual travel expenditure and is limited by the prescribed fare rules. A cash claim without performing the qualifying journey does not by itself qualify for the Section 10(5) exemption.

New tax regime

The Section 10(5) LTA/LTC exemption is not available when salary income is computed under the default new tax regime under Section 115BAC. Employees should distinguish an employer reimbursement benefit from its separate income-tax treatment.

Official references

For the latest statutory text, tax guidance and Central Government LTC rules, refer to the official Government of India sources below.

Income Tax Department - Section 10 Income Tax Department - Rule 2B Income Tax Department - Salaried Individuals DoPT - CCS (LTC) Rules

Frequently asked questions

Can an employee use this format for a private-sector LTA claim?

Yes. The wording is suitable as a general request, but the employer's HR policy, leave policy, reimbursement rules and claim form will determine eligibility and documentation.

Is LTA the same as LTC?

The expressions are often used for travel benefits in employment, but the governing conditions depend on the employer or service rules. Central Government employees are governed by the applicable LTC rules, while private employers may use their own LTA or travel-benefit policies.

Does the tax exemption cover hotel, food or sightseeing expenses?

Section 10(5) and Rule 2B focus on eligible travel fare and prescribed fare limits. Other holiday expenses should not be assumed to qualify merely because they are connected with the trip.

Note: This page provides a general format and an overview of the applicable tax framework. Employees should verify their employer's current policy or departmental service rules before submitting a claim.