This is the 2nd LTA Blog, here is the link for 1st LTA Blog : https://www.crafthr.in/2020/05/10/leave-travel-allowance/
LTA exemption cannot be claimed at the time of ITR filing, the exemption is limited to LTA provided by the employer.
LTA exemption is available only for travel and not for Boarding, Lodging, local conveyance, sightseeing, food, etc.
Carryover of Unclaimed LTA
Some Employers also allow the unclaimed LTA amount to be carried over to next Financial Year, whereas some employers pay back the unclaimed LTA amount as taxable component, in same financial year, either at the year-end or on monthly basis.
Carryover of Journeys Exemption to next Year
In case if any employee has not availed 1 or 2 journey in any block year, he/she is allowed to carryover such exemption to the 1st calendar year of the next block year
LTA in case of Air Travel, Train, Taxi Etc
In case of your source and destinations are not connected by any recognized public transport – it will be presumed that the journey had been performed by rail and the exemption amount cannot exceed the amount equivalent to the AC 1st Class rail fare for shortest route
In case of your source and destination are not connected by rail but by other recognized public transport – Exemption amount is restricted to 1st class or deluxe class fare for the shortest route
In case of your source and destination are connected by rail – exemption amount cannot exceed the amount equivalent to the AC 1st Class rail fare for shortest route
In case of journey from source to destination is performed by Air – exemption amount is restricted to the Economy fair of Indian Airlines or Air India for the shortest route
Multi Destination Journey
In case of Multi Destination Journey, exemption is always considered for the shortest route from source to destination (Place of origin to the farthest place).
LTA Exemption on Holidays
As per IT Act 1961, LTA exemption cannot be availed for the journey performed during Holidays and some organizations do follow the rules strictly and reject the claims.