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Leave Travel Allowance Calculator India — FY 2025-26

Calculate your LTA tax exemption under Section 10(5) of the Income Tax Act. Track block years (2022–2025, 2026–2029), check carryover rules, and see the tax cost of taking LTA as cash instead of travelling.

Annual LTA component from your CTC or salary structure
Total travel fare (tickets only — no hotel, food, or local transport)
Exemption is limited to the eligible class for the chosen mode
persons
Self, spouse, up to 2 children, dependent parents/siblings
Gross total income to estimate marginal tax rate

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How to Use This Calculator

LTA Exemption tab

Enter your annual LTA from CTC and actual travel cost (fare only). Select your travel mode — the exemption is capped at economy class (air) or AC first class (rail). The calculator shows the exempt amount, taxable portion, and estimated tax savings under the old regime.

Block Year Tracker tab

Select the block year period (2022–2025 or 2026–2029) and how many trips you have already claimed. See how many tax-exempt trips remain and whether you can carry over an unclaimed trip to the next block. The carryover must be used in the first calendar year of the next block (by 31 December).

LTA vs Cash tab

Enter the LTA amount received as cash without travel and your income. See exactly how much tax you lose by not travelling. At a 30% slab, ₹40,000 LTA taken as cash means ₹12,480 (including cess) wasted in tax — money you could have kept by taking a trip.

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The Formula

LTA exemption under Section 10(5) is calculated as follows:

LTA Exemption = LOWER of:

(1) LTA received from employer (annual CTC component)
(2) Actual travel fare incurred (tickets only)

Eligible travel fare is subject to these limits:
• Air travel: Economy class airfare
• Rail travel: AC First Class fare
• No rail route: AC First Class fare for the distance, or recognized public transport fare
• Always via the shortest route to the destination

What is NOT covered:
• Hotel accommodation
• Food and meals
• Local transport at destination
• Sightseeing and activities
• International travel (India only)

Block year rule:
2 tax-exempt trips per block of 4 calendar years
Current: 2022–2025 | Next: 2026–2029
Carryover: 1 unclaimed trip → first year of next block

Important: LTA exemption is available only under the old tax regime. If you opt for the new regime under Section 115BAC, the entire LTA is taxable as salary income regardless of whether you actually travelled.

Example

Rahul — IT professional with ₹60,000 LTA, took a family trip costing ₹45,000

Rahul works in Bengaluru, earns ₹12,00,000 per year, and has ₹60,000 LTA in his CTC. He took a train trip (AC 2-tier) with his family of 4 costing ₹45,000 in fare.

Step 1: Determine the exempt amount

LTA received (annual)₹60,000
Actual travel fare₹45,000
Exempt amount (lower of above)₹45,000

Step 2: Calculate taxable portion

LTA received₹60,000
Less: Exempt amount₹45,000
Taxable LTA₹15,000

Step 3: Tax impact (old regime)

Marginal slab rate (at ₹12L income)20%
Tax saved via exemption₹9,000
Cess saved (4%)₹360
Total tax benefit₹9,360

By travelling and submitting bills, Rahul saves ₹9,360 in tax. The remaining ₹15,000 (LTA minus travel cost) is added to his taxable salary.

What if Rahul took LTA as cash?

If Rahul did not travel and received the entire ₹60,000 as cash:

LTA received as cash₹60,000
Tax at 20% slab₹12,000
Cess at 4%₹480
Total tax paid₹12,480
Net cash after tax₹47,520

By not travelling, Rahul loses ₹12,480 in tax — that is 20.8% of his LTA gone to the government.

FAQ

LTA is a salary component that reimburses employees for domestic travel costs. Under Section 10(5) of the Income Tax Act, the exemption equals the lower of (a) LTA received from your employer, or (b) actual travel fare incurred. Only travel fare (air/rail/bus tickets) qualifies — hotel, food, and local transport are not covered. The exemption is available only under the old tax regime.
LTA works in blocks of 4 calendar years: 2022–2025 (current), 2026–2029 (next). You get 2 tax-exempt trips per block. If you have unused trips at the end of a block, you can carry over 1 trip to the first calendar year of the next block. For example, unclaimed trips from 2022–2025 must be used by 31 December 2026, or the carryover expires.
No. LTA exemption under Section 10(5) is not available under the new tax regime (Section 115BAC). If you opt for the new regime, the entire LTA is taxable as salary income. This is one of the key trade-offs — use our Income Tax Calculator to compare old vs new regime and see which saves more.
LTA covers travel for: yourself, your spouse, up to 2 children (born after 1 October 1998), and parents, brothers, and sisters who are wholly or mainly dependent on you. Children born before 1 October 1998 face no restriction. For children born after that date, multiple births (twins/triplets) on the second occasion are also allowed.
You need: travel tickets (boarding passes, train tickets, bus tickets) showing the fare amount, proof of travel (itinerary, booking confirmation), and a declaration to your employer. Submit these to your employer’s HR/payroll team during the tax declaration window. Keep copies for at least 6 years in case of an income tax scrutiny. The travel must be during a period of leave sanctioned by your employer.

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