LTA DEDUCTION amount

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The LTA deduction is limited to travel expenses for the shortest route between your origin and destination. This includes economy airfare on the national carrier or air-conditioned first-class rail fare, depending on the mode of transport and connectivity. Intermediate stops are not considered when calculating the shortest route for deductions.

Chahat Khanna

Chahat Khanna (Querist)
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25 October 2024 Resolved and deleted.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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25 October 2024 According to Rule 2B of the Income-tax Rules, 1962 (Rules), only travel expenses (air/rail/road) for the shortest route between origin/base location and destination will be exempt from tax, subject to the following limits:

a) In case the journey is performed by air: Economy airfare of the national carrier for the shortest route or the amount spent, whichever is less
b) In case the place of origin of the journey and destination are connected by rail but the journey is performed by any mode of transport other than air: Air conditioned first class rail fare for the shortest route or amount spent, whichever is less
c) In case the place of origin of the journey and destination are not connected by rail:
i) Where a recognized public transport system exists: 1st class or deluxe class fare on such transport by the shortest route to the place of destination; and
ii) Where no recognized public transport system exists: air conditioned first class rail fare for the shortest route, as if the journey had been performed by rail.

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Chahat Khanna

Chahat Khanna (Querist)
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07 November 2024 Resolved and deleted.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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07 November 2024 1. Air conditioned first class rail fare for the shortest route i.e city A to city E, or amount spent, whichever is less.
2. Intermediate cities are not counted, shortest route train fair between first and last city.

Chahat Khanna

Chahat Khanna (Querist)
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01 March 2025 While allowing deduction of one journey, travel expense for city A to B and return from B to A both would be considered as one journey, right?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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01 March 2025 Right.............

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