Claim Settlement Ratio of 99.29%~

Close Button Close Button
X
NRI Services Helpline

Calling FromPhone Number
Calling us from INDIA18002097272 (Toll Free)
Rest of the World+912067871700
(Call charges apply)

What is Leave Travel Concession and Its FAQs?

Envision receiving concessions from your employer for travelling. Sounds fantastic, right? Leave travel concession is one such benefit that makes your travelling and vacation plans more affordable. LTC, or leave travel allowance, is a benefit offered to government employees in India for domestic travel. Employees do not have to save separately for their vacations but can enjoy the benefits of LTC. Not only this, but LTC also offers tax benefits, which makes it a dual-benefit perk!

Investment Plans
I agree and consent to the Terms & Conditions, Privacy Policy

Get Your Life Goals, Done!

Tailored Life Insurance Solutions for your long-term Life Goals.

Written ByShruti gujarathi
AboutShruti gujarathi
LinkedIn Icon
Shruti gujarathi has 5 years of experience in the BFSI sector, and as Manager- Digital Marketing at Bajaj Allianz Life Insurance, manages digital and content marketing. She has had hands-on experience in content strategy, performance marketing and Strategic Alliances over a career spanning 10 years.
Reviewed ByRituraj Singh
AboutRituraj Singh
LinkedIn Icon
Rituraj Singh,With over 6.5 years of experience in the insurance industry, Rituraj Singh, Manager- Product & Brand Marketing at Bajaj Allianz Life Insurance overlooks new product launches, compliance, and brand projects, leveraging artificial intelligence and technology to enhance outcomes.
Written on: 22nd April 2025
Modified on: 27th April 2025
Reading Time: 14 Mins
Share

What is a leave travel concession?

 

Leave travel concession, or LTC is a benefit offered to salaried employees. In a block of 4 years, employees can claim LTC twice. The current block is 2022-20252. Under the Income Tax Act of 1961, individuals can get tax exemption on the actual travel fare subject to the maximum LTA limit set by their employer. If an employee is entitled to ₹40,000 LTA and they spent ₹25,000 on travel fare, only this amount can be claimed under LTC and not ₹40,000.

Some common FAQs on LTC

 

Now that you know ‘what is leave travel concession’ is, let's dig deeper to learn more about it. Here, we have listed some of the most frequently asked questions regarding LTC. Read on to get answers to your query:

  1. Who is eligible for Leave Travel Concession? 1


    Leave travel concession is a benefit available for both state and central government employees with a minimum of 1-year service. The benefit of LTC can be shared with the employee's family. The family includes the spouse, parents, wholly or mainly dependent children, and siblings of the employee.

    You must note that the employees whose spouses are working with the Indian Railways or National Airlines are ineligible for LTC benefits.
  2. How much LTC amount can I claim?


    The LTC amount may vary for different employees. It depends on the rank and salary of the employee. The amount also depends on the mode of transportation selected by the employee, such as bus, train, or flight. One must choose the shortest travel distance. You must note that LTC does not cover the cost of accommodation, food, sightseeing, local tour costs, etc., only the travel fare.

  3. Can I claim LTC every year?


    Leave travel concession can be claimed twice2 in a block of four years. In one year, multiple claims cannot be raised. That means you can only raise 1 claim in a year and a maximum of 2 claims in the 4 year block.

  4. Does LTC cover my family? 1


    Yes, LTC also covers the employees' families. The term family covers the employee's spouse, wholly or mainly dependent children, siblings, and parents.

    In order to raise an LTC claim for your family, the employee must travel, too.

  5. What is meant by the LTC block year?


    Leave travel concession blocks are different from calendar years or financial years. They are blocks of four consecutive financial years. The government announces the LTC block. A four-year block was announced for the first time in 19891. The current block year is 2022-20252, and the previous block is 2018-202121.

  6. What are the tax benefits under LTC?


    The tax exemption is based on the actual travel expense. Under Section 10(5) of the Income Tax Act of 1961, taxpayers can claim tax exemption on the actual travel fare.3 The exemption is limited to the maximum LTC provided by the employer. 3

  7. Does the new tax regime provide LTC tax exemption?


    No. Taxpayers who opt for the new tax regime cannot claim LTC tax exemption. It remains taxable under the new tax regime. You can claim it under the old tax regime when you file your returns.1

  8. Is LTC applicable for those under a new income tax regime?


    No. Individuals who fall under the new income tax regime cannot claim LTC benefits.

  9. Can I avail the LTC of the previous year in the existing block?


    Yes. This is known as the carryover LTC. If you do not raise any LTC claims in the first year same can be claimed in the second year but it should be in existing block only then you are eligible for carry-over concession.


 

    Life Insurance Guide -Tax Related Articles

    Long term investment plans - What Are Their Benefits?

    A suitable financial plan may be defined by its components. Amongst other things, one aspect, it may be incomplete without, is a steady amount of investment.

    Read More
    Long term investment plans - What Are Their Benefits?

    A suitable financial plan may be defined by its components. Amongst other things, one aspect, it may be incomplete without, is a steady amount of investment.

    Read More
    Long term investment plans - What Are Their Benefits?

    A suitable financial plan may be defined by its components. Amongst other things, one aspect, it may be incomplete without, is a steady amount of investment.

    Read More
    Long term investment plans - What Are Their Benefits?

    A suitable financial plan may be defined by its components. Amongst other things, one aspect, it may be incomplete without, is a steady amount of investment.

    Read More
    Disclaimers:
    Plus Symbol
    Minus Symbol

    The views stated in this article are not to be construed as investment advice and readers are suggested to seek independent financial advice before making any investment decisions. Bajaj Allianz Life Insurance Company Ltd., Regd. office Address: Bajaj Allianz House, Airport Road, Yerawada, Pune - 411006, Reg. No.: 116, CIN: U66010PN2001PLC015959, Call us on toll free No.: 1800 209 7272, Mail us: customercare@bajajallianz.co.in

     

    Tax benefits as per prevailing Income tax laws shall apply. Please check with your tax consultant for eligibility

    BJAZ-WEB-ECNF-14659/25

    X
    Disclaimer

    *Tax benefits as per prevailing Section 10(10D) and Section 80C of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy.

    ~Individual Death Claim Settlement Ratio for FY 2023-2024

    1Premium Holiday has to be selected at inception to avail this benefit and also depends on other policy terms & conditions


    Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116

    X
    Terms & Conditions

    I hereby authorize Bajaj Allianz Life Insurance Co. Ltd. to call me on the contact number made available by me on the website with a specific request to call back. I further declare that, irrespective of my contact number being registered on National Customer Preference Register (NCPR) or on National Do Not Call Registry (NDNC), any call made, SMS or WhatsApp sent in response to my request shall not be construed as an Unsolicited Commercial Communication even though the content of the call may be for the purposes of explaining various insurance products and services or solicitation and procurement of insurance business

     

    Please refer to BALIC Privacy Policy

    X
    Disclaimer

    %%Above illustration is for Bajaj Allianz Life eTouch- A Non Linked, Non-Participating, Individual Life Insurance Term Plan (UIN: 116N172V03) considering Male aged 25 years | Non-Smoker | Policy Term (PT)– 30 years | Premium Payment Term (PPT) – 30 years | Sum Assured opted is Rs. 1,00,00,000 | Online Channel | Standard Life | 1st Year Premium is Rs. 6,238. 2nd Year onwards premium is Rs. 6,659. Total Premium Paid is Rs. 1,99,349 | Medical Rates | Yearly Premium Payment Mode | Death benefit opted is lumpsum payout and monthly installments (Lumpsum Payout Percentage : 45, Income Payout Percentage : 55) | Premium shown above is exclusive of Goods & Service Tax/any other applicable tax levied, subject to changes in tax laws, and any extra premium and is for illustrative purpose only. This is inclusive of all the discounts mentioned above.

    ##Tax benefits as per prevailing Section 10(10D) and Section 80C of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy.Above Tax benefit is calculated considering deduction of Rs. 150,000 and applicable tax rate of 31.20%.

    @Term Insurance plan bought online directly from Bajaj Allianz Life Insurance has no commissions involved.

    ^^The Return of Premium amount is total of all the premiums received, exclusive of extra premium, rider premium and GST & /any other applicable tax levied, subject to changes in tax laws
    Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116

    X
    Disclaimer

    Bajaj Allianz Life eTouch- A Non Linked, Non-Participating, Individual Life Insurance Term Plan (UIN: 116N172V04)

    *Tax benefits as per prevailing Section 10(10D) and Section 80C of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy.Above Tax benefit is calculated considering deduction of Rs. 150,000 and applicable tax rate of 31.20%.

    ~Individual Death Claim Settlement Ratio for FY 2023-2024

    1Premium Holiday has to be selected at inception to avail this benefit and also depends on other policy terms & conditions


    Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116


    close
    Ask for an Agent
    Sign up for personal visit and tailored advice from our expert agents