Leave Travel Concession (LTC) Guide
Complete Guide for Government Employees — Understand eligibility, block years, reimbursement process, and tax benefits
2 Journeys
Per Block Year
Family Travel
Spouse + 2 Children
Fare Only
Travel Reimbursed
Tax-Free
Section 10(5)
What is LTC?
Leave Travel Concession (LTC) is a valuable benefit that allows central and state government employees to claim reimbursement of domestic travel expenses as per block year norms. It encourages family travel within India and supports employee recreation and well-being.
Key Benefits:
- Reimbursement of domestic travel fares for you and family members
- Tax-free benefit under Section 10(5) of Income Tax Act
- Covers up to 2 journeys per 4-year block period
- Applicable across all Indian rail, air, and bus services
Eligibility Criteria
Service Requirements
- ✅ Minimum 1 year continuous service
- ✅ Central/State govt employees
- ✅ Recognized government organizations
Eligible Family Members
- ✅ Self (employee)
- ✅ Spouse
- ✅ Maximum 2 children
- ✅ Dependent parents/siblings (special rules)
Income Restrictions
- • Dependents: Income ≤ ₹3,500/month
- • Spouse: No income limit
- • Exception: If spouse works in IR/Airlines
Special Categories
- • Fresh recruits: Extra conversion options
- • NER posted: Special block year benefits
- • J&K/Ladakh: Enhanced conversion options
Block Year System
LTC is allocated in 4-year block periods. Each block allows specific number of journeys that must be completed within the grace period.
| Block Period | Eligible Journeys | Grace Period | Special Options |
|---|---|---|---|
| 2022–2025 | Home Town or All India | Till Dec 2026 | NER/J&K/Ladakh conversion |
| 2026–2029 | Home Town or All India | Till Dec 2030 | NER/J&K/Ladakh conversion |
💡 Important Notes:
- • Unused journeys can be carried forward within grace period
- • Conversion to NER/J&K/Ladakh allowed for special postings
- • Home Town journey: To employee's hometown within India
- • All India journey: To any place within India (no restrictions)
LTC Claim Process
Follow these steps to successfully claim your LTC reimbursement:
Apply for Leave Approval
Submit your leave application with travel details to your immediate supervisor
Book Eligible Travel
Purchase tickets for eligible family members on Indian Railways, Airlines, or Bus services
Undertake the Journey
Complete your domestic travel with family members within the block year period
Submit LTC Claim Form
File LTC claim form with original tickets, boarding passes, and supporting documents
Office Verification
HR/Admin verifies documents, eligibility, and claim amount within 30-45 days
Reimbursement Credited
Approved amount is credited to your salary/bank account as tax-free allowance
⚠️ Important Reminders:
- • Keep all original tickets and boarding passes as proof
- • Only travel fare is reimbursed (not accommodation or meals)
- • Submit claim within 3 months of journey completion
- • Claim must be within the applicable block year
What Gets Reimbursed?
✅ Reimbursable Expenses
- ✓ Railway fare (all classes)
- ✓ Air travel fare
- ✓ Bus/Coach fare
- ✓ Domestic travel within India
- ✓ Eligible family member fares
❌ Non-Reimbursable Expenses
- ✗ Hotel/Accommodation charges
- ✗ Meals and food expenses
- ✗ Sightseeing and activities
- ✗ Personal vehicle/Taxi charges
- ✗ International/Foreign travel
Documentation Required:
- • Original train/airline/bus tickets
- • Boarding passes (for air travel mandatory)
- • Proof of family member details (birth cert, marriage cert)
- • Claim form signed by employee
- • Identity proof of traveling members
Tax Benefits (Section 10(5))
LTC reimbursement is completely exempt from income tax under Section 10(5) of the Income Tax Act, provided the rules are followed.
Tax Exemption Details
- ✅ Exemption: Reimbursed travel fare is tax-free
- ✅ Eligible Journeys: Up to 2 journeys per 4-year block
- ✅ Family Coverage: Self, spouse, 2 children, dependent parents
- ✅ Scope: Domestic travel within India only
What Remains Taxable
- • Hotel and accommodation expenses (taxable as other income)
- • Meals and food during travel (taxable)
- • Personal expenses (taxable)
- • Any fare above eligible amount (taxable)
💡 Pro Tip:
Keep LTC reimbursement separate from other salary components when filing tax returns. Clearly mark it as tax-exempt under Section 10(5).
Questions About LTC? 🚀
Confused about eligibility, block years, or claim process? We're here to help!
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