Tax on lta
This query is : Resolved
Pradeep Tiwari
(Querist)
19 September 2013
sir
If an employer paying LTA every year to his emplyee with submission of supports. can the employer use exemption of LTA at every alternate year (means one year tax and next year exemption)instead of using block of year cluase. Need clear advise.
Thanks
If an employer paying LTA every year to his emplyee with submission of supports. can the employer use exemption of LTA at every alternate year (means one year tax and next year exemption)instead of using block of year cluase. Need clear advise.
Thanks
Pradeep Tiwari
(Querist)
21 September 2013
Opinion awaited
26 July 2025
Good question on Leave Travel Allowance (LTA) exemption and the block of years rule!
### Key point on LTA exemption under Income Tax Act:
* **LTA exemption is allowed only for travel expenses incurred within a block of 4 calendar years.**
* The current block is **2018–2021**, next will be **2022–2025**, and so on.
* You can claim exemption **only for travel actually undertaken during these block years**.
* If you don’t claim exemption in a particular block, you **cannot carry forward the exemption** to the next block.
---
### Your question:
> Can the employer allow exemption on LTA for every alternate year (like exempt one year, taxable next year) ignoring the block year rule?
### Answer:
* **No, this is not allowed.** The exemption cannot be claimed arbitrarily every alternate year.
* The employee can **claim LTA exemption only for travel done during the block years**, with valid proof.
* The exemption is not dependent on whether the employer pays LTA every year or not, but on **actual travel within the block**.
---
### Summary:
* Employer **cannot just alternate exemption/taxation years** for LTA.
* Employee can claim exemption **only for travel expenses during the block period**, with valid supporting documents.
* Payment of LTA every year is fine, but exemption is linked to travel within the block of years.
---
If the employee claims LTA exemption for travel in 2019, then in 2020 or 2021 also, LTA can be claimed if travel occurred. But in 2022, the new block starts and fresh travel is needed to claim exemption.
---
Let me know if you want a sample explanation or calculation for your situation!
### Key point on LTA exemption under Income Tax Act:
* **LTA exemption is allowed only for travel expenses incurred within a block of 4 calendar years.**
* The current block is **2018–2021**, next will be **2022–2025**, and so on.
* You can claim exemption **only for travel actually undertaken during these block years**.
* If you don’t claim exemption in a particular block, you **cannot carry forward the exemption** to the next block.
---
### Your question:
> Can the employer allow exemption on LTA for every alternate year (like exempt one year, taxable next year) ignoring the block year rule?
### Answer:
* **No, this is not allowed.** The exemption cannot be claimed arbitrarily every alternate year.
* The employee can **claim LTA exemption only for travel done during the block years**, with valid proof.
* The exemption is not dependent on whether the employer pays LTA every year or not, but on **actual travel within the block**.
---
### Summary:
* Employer **cannot just alternate exemption/taxation years** for LTA.
* Employee can claim exemption **only for travel expenses during the block period**, with valid supporting documents.
* Payment of LTA every year is fine, but exemption is linked to travel within the block of years.
---
If the employee claims LTA exemption for travel in 2019, then in 2020 or 2021 also, LTA can be claimed if travel occurred. But in 2022, the new block starts and fresh travel is needed to claim exemption.
---
Let me know if you want a sample explanation or calculation for your situation!
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