LTA

Dear Friends,

I have resigned from my previous employer and joined the new company on 15th Oct-2009. On settlement the old company paid me a LTA for 18.5 months(2008-09 and 6.5 months in 2009-10)  @ Rs.1250/- p.m. Please let me know the tax treatment of LTA.  Should i pay tax for Rs.23,125/- or can i claim any exemption. I have not travelled anywhere. I received this amount on Dec-2009 . Please advice me how much deduction i will get.

Thanks,

Prasanna