What is LTA (Leave Travel Allowance)?
Leave travel allowance (LTA) is an allowance some Indian employers pay for travel taken while on leave, often claimed against bills. It is usually a flexible part of salary. Whether it is tax-free depends on the tax rules and regime in force, so check the Income Tax Department before claiming.
Example
Your salary breakup includes LTA of a set amount a year. You submit tickets for a family trip and the employer reimburses within the policy. Reimbursement-based payments are not part of "wages" under the Labour Codes, per the Ministry's FAQ.
Related
See HRA and in-hand salary.
Related terms and guides
Sources
- Income Tax Department, Government of India, https://www.incometax.gov.in, live official page, linked for readers; link checked 2026-10-31
- Ministry of Labour and Employment, FAQs on Labour Codes (Dec 2025), https://www.labour.gov.in/static/uploads/2026/01/de4758d5bfeffc456d7de97a801891b0.pdf, live official page, linked for readers; link checked 2026-10-31
This is general information, not legal, tax or immigration advice. Rules change and your situation may differ. Consult a licensed attorney or qualified adviser.