Leave Travel Allowance (LTA) is a type of allowance provided to an employee by their employer to cover the expenses incurred while travelling on leave. The objective of LTA is to encourage employees to avail leave for their personal travel, refreshment, and entertainment purposes. Here are some details regarding LTA:

LTA is a tax-free allowance: The income tax act allows an exemption for LTA received by an employee twice in a block of four years. The current block of four years for LTA exemption calculation is 2018-21.
LTA is not part of an employee’s basic pay: LTA is an allowance provided by employers and is not considered as part of the employee’s basic pay.
LTA covers travel expenses: LTA covers the expenses incurred by an employee while travelling on leave. This includes the cost of travel, food, and accommodation.
LTA is applicable for domestic travel only: Employees can claim LTA only for their domestic travel within India. International travel expenses are not covered under LTA.
LTA eligibility: The eligibility criteria for LTA varies from company to company. Generally, employees are eligible for LTA after completing a certain period of service (usually one year).
LTA can be claimed twice in a block of four years: An employee can claim LTA twice in a block of four years. The current block of four years for LTA exemption calculation is 2018-21.
LTA exemption calculation: The LTA exemption is calculated based on the actual expenses incurred by the employee on travel during their leave period. The maximum amount that can be exempted under LTA is limited to the amount prescribed by the government.

LTA is a great way for employees to take a break from work and explore different places in India. It not only provides financial aid for travel but also encourages employees to take time off from their work-life and refresh themselves.

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