Leave travel allowance (LTA)
LTA stands for Leave travel assistance or allowance . One can get a tax deduction on one's LTA amount if one plans to travel within the country. It is paid as a part of remuneration of employees. The LTA amount is received from the employer for undertaking a journey within India. LTA is eligible for tax deduction under the Income Tax Act subject to compliance with specified conditions. Section 10 of Income Tax Act specifies that in the case of an individual ,the value of any travel concession or assistance received is exempt if it is received from his employer, for himself and his family, in connection with his proceeding on leave to any place in India. The amount exempt cannot exceed the amount of expenses actually incurred in the travel. The exemption is available to a maximum of two children of an individual. The exemption is available on the amount incurred on travel to the farthest place by the shortest route when circular journey is undertaken. The exemption is available to a...