Leave Travel Concession

Under sec 10(5) in computing the total income of a previous year of any person, any income by way of Leave Travel Concession/ Assistance shall not be included.
In the case of an individual, the value of any travel concession or assistance received by, or due to, him,
(a) from his employer for himself and his family, in connection with his proceeding on leave to any place in India ;

(b) from his employer or former employer for himself and his family, in connection with his proceeding to any place in India after retirement from service or after the termination of his service,
subject to such conditions as may be prescribed, regard to the travel concession or assistance granted to the employees of the Central Government :

Provided - That the amount exempt under this clause shall in no case exceed the amount of expenses actually incurred for the purpose of such travel.

Explanation – The above section states that any concession received by an employee for himself or his family for traveling to any place in India is exempt, to extent of amount spent. Conditions to be fulfilled to claim exemption are as follows:

i) Exemption can be claimed for two journeys in a block of 4 years. The present running block is 2006-09.

ii) Out of 2 journeys, exemption for one can be claimed during the calendar year succeeding the end of the block.

iii) Family of employee shall include spouse and children of the employee and dependent parents, brothers and sisters.

iv) Amount of exemption cannot exceed the actual expenditure incurred. Such expenditure is also subject to the maximum limit and the mode of transport availed/allowed.


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