LTA

LTA stands for Leave Travel Allowance.

It is the component of an employee's cost-to-company that can be claimed twice in a block of four calendar years for travel within India by air, rail, or road. The exemption is limited to the actual fare, not hotel or food, and is available for any destination in India including the hometown. LTA is fully exempt under Section 10(5) for the shortest distance between the place of origin and the destination, and the journey must be undertaken by the employee.