LTA (Leave Travel Allowance) is a tax-exempt component of salary that covers travel expenses for you and your family during leave. It can be claimed twice in a block of four years (e.g., 2022–25, 2026–29).

How LTA Works

• Eligibility: Salaried employees only
• Frequency: Twice in a block of 4 years
• Coverage: Travel within India only (train, flight, or bus)
• Family: Spouse, children, parents, siblings (subject to conditions)

For FIRE Planning

LTA reduces taxable income without affecting your FIRE number—it’s a legal tax optimization. If your employer offers LTA, plan your trips to align with the block years to maximize the benefit. LTA is separate from Section 80C and HRA—you can claim all three.