## What is LTC?
LTC (also called LTA) is an amount paid by the employer to cover the travel cost of an employee (and family) while on leave within India. Foreign travel is never exempt.
## Block & Frequency Rules
- Exemption available for 2 journeys in a block of 4 calendar years.
- Current block: 2022 – 2025.
- If only one or no journey is undertaken in a block, one unused journey may be carried forward to the first year of the next block (called the 'carry-over concession').
## Quantum of Exemption
| Mode of Journey | Exemption (lower of) |
|---|
| By Air | • Amount actually spent
• Economy class air-fare of the national carrier by the shortest route |
| By Rail | • Amount actually spent
• A.C. First Class rail fare by the shortest route |
| By Other Mode – origin/destination connected by rail | • Amount actually spent
• A.C. First Class rail fare for the equivalent distance by shortest route |
| By Other Mode – not connected by rail, but recognised public transport exists | • Amount actually spent
• First Class / Deluxe class fare of that transport by shortest route |
| By Other Mode – no recognised public transport | • Amount actually spent
• A.C. First Class rail fare for the equivalent distance by shortest route |
## Conditions for Family
- 'Family' = spouse, children, and dependent parents/brothers/sisters.
- For children born on or after 1 October 1998, exemption is restricted to a maximum of 2 children.
- No restriction on number of children born before 1 October 1998.
- Multiple births after one child are treated as one event (so twins after first child are allowed).
## Other Points
- LTC must be actually utilised; cash equivalent without travel is fully taxable.
- Local travel within a city is not eligible.