LTA Bus fare Eligible or Not

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Kishore Nuthalapati

Accountant for multiple small entities

154 Points Posted on 23 July 2023

Hi Sir or Madam

In order to claim LTA under section 10(5) of the Income tax Act, will Bus fare can be considered

There are lot of Bus tickets as part of his journeys for an Individual who is a salaried employee

Please advise

Thanks in advance

Replies (2)

Quick Summary

This discussion clarifies whether bus fares are eligible for Leave Travel Allowance (LTA) claims under Section 10(5) of the Income Tax Act. Generally, bus fares can be claimed if the journey is not connected by rail, or if you choose to travel by bus even when a rail connection exists. In such cases, the exemption is typically limited to the first-class or AC rail fare for the shortest route, or the actual bus fare if it's lower. Remember to keep all tickets as proof for your employer.

jagdish chhugani

engineer

833 Points Posted on 30 July 2023

Public transport

Expenses exempted under LTA Allowance

Travel by plane: The cheapest airfare using the shortest route or the amount paid, whichever is less, would be omitted.
Travel by rail: A.C. first-class fare from the shortest path or the amount expended on travel, whichever is less, would be removed.
The origin and destination points of the journey are linked by train, but the journey is completed by another means of transportation.
The origin and destination locations are not linked by rail (partly or completely) but are connected by another recognized public transportation system.
The origin and destination locations are not linked by rail (partly or completely) but are connected by another recognized public transportation system.

Also, read about Special Allowances

Advantages of LTA:

The origin and destination places are not (partially or completely) connected by rail, but are instead connected by another recognized public transit system.

The origin and destination locations are not (partially or completely) linked by train, but rather by another well-known public transportation system.

The origin and destination locations are linked (partially or completely) by another well-known public transit system, rather than by rail.

These benefits can be for solo and family travel.

The family members’ allowance is also covered.

Aashok Kumar Sharma

Finance/Compliance Consultant

77884 Points Posted on 07 November 2026

Yes, bus fare can count:

• Rule 2B: where journeys are performed by any mode other than air or rail, and the places aren't connected by rail: if a recognised public transport system exists, first class or deluxe class fare by such transport for the shortest route is exempt. Otherwise, the first-class or AC rail fare equivalent.

• Where places are connected by rail, but you travel by bus: exemption is limited to the AC first-class rail fare for the shortest route (or actual bus fare if lower).

• Only the employee and family (spouse, 2 children, dependent parents, siblings). 2 journeys in a block of 4 years (2022–2025). Old regime only.

• Keep tickets. The employer may ask for them before excluding LTA from Form 16.