Get Four Times LTA Exemption Instead of Two Times LTA Exemption : Leave Travel Allowance


Yes, I know after read the Title of Post you cant stop your self for read whole article.

Of Course, I wrote this post for you only after do research on Leave Travel Allowance.

But...Please recheck your CTC and check, Do you have LTA Component ?

If yes, then please go ahead to read and understand it carefully ..
If No, then it's time to add this very simple and even complex LTA Component into Your CTC and ask your account manager/payroll manager to get benefit of this very interesting component :)

I know you are waiting for thing that you want to know how it is possible ..

I know if you can just google " LTA Rules" Or "LTA Block" then you'd get enough information on all complex/simple different rules for provide proof to get benefit of LTA so it's not my job to explain all the rules again in this post and bore you :)
I know i am already boring you by waiting for "how" ?


Let me tell you first simple rule that you must know before know "how" ?
  • Employee would get LTA Exemption only two times in four years block.
Confuse ?
Let me tell you that current block is 2010-13(JAN 2010-DEC 2013)
  1. JAN -DEC 2010
  2. JAN -DEC 2011
  3. JAN -DEC 2012
  4. JAN -DEC 2013
Yes, it's not respective with your financial year April-March :)

So, After researching well. I got to know second simple rule as below
  • If Employee does not use two times LTA Exemption in current/past four blocks then one LTA year exemption would carry forward to next four year LTA exemption but that need to use it in first year of next block ;).
Means, You would get almost three time LTA exemption available in four year block.
Still, Did not get it ? No ..ok ok dont worry , I am there for same

As i told you first simple rule , you would get two times LTA exemption in four year so you'd use it in any time during the four years and if you have not used during current four block[2010-2013] then only one LTA exemption would carry forward to next four year block[2014-2017] and you go for family vacation in first year of next four years block.

So, what ? simple addition formula : 1+2 = 3 year LTA Exemption on next four year block [2014-2017]

Agreed still now with me ? if yes then go ahead else you need break/sleep :)

But you mentioned in post title "Get Four Year LTA Exemption Instead of legal Two Years LTA : Leave Travel Allowance", according title, we should get four time LTA exemption :)

Yes, Yes .I know .we are human and always need more than what we have ..we cant happy with current :) :) Of course me too ..i am also human ..

This is next that is not new LTA rule or any complex rule or publish by Finance Minister this budget :) Not at all ..here logic come to picture if you are mind with you.

Let me assumed that If you have already used three times LTA exemption in current block then you are in year 2013.

So, you wont get LTA benefit from Income Tax right for this year  ? don't say NO ..

say ..YES ..be-course  in current year JAN 2013-DEC 2013, You wont go out for family travel or family vacation ..yes you must not ..

and of course, I don't mind you go for vacation on 1st of JAN month of 2014 and show it to Income Tax while file IT Return for Financial year April 2013- March 2014.

In short, you'd get four times LTA Exemption in last four financial year 2010-2013.

Enjoy ..!!!

I hearty thank for taking time and read my post :).
It's my pleasure!!.

Advise: 
Please talk with finance/charted account adviser/consultant before do any IT Investment.




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