The Strict Rules of LTA
- Travel Only: LTA exemption is available only on actual travel costs. This means flight, train, or bus tickets. Hotel bills, food, local taxis, and sightseeing expenses are strictly ineligible.
- Domestic Only: International travel is completely excluded from LTA benefits. You must travel within the geographical borders of India.
- The 4-Year Block: The government limits LTA claims. You can only claim this exemption for exactly 2 journeys in a block of 4 calendar years. (The current block is 2022-2025). If you don't use it, you can carry forward 1 claim to the first year of the next block.
- Flight Limits: If you fly, the maximum exemption is capped at the economy class fare of the national carrier (Air India) by the shortest route to your destination.