{"id":4511,"date":"2026-05-29T21:58:37","date_gmt":"2026-05-29T21:58:37","guid":{"rendered":"https:\/\/aaxonix.com\/resources\/?post_type=glossary&#038;p=4511"},"modified":"2026-05-30T02:53:25","modified_gmt":"2026-05-30T02:53:25","slug":"lta-leave-travel-allowance-zoho-payroll","status":"publish","type":"glossary","link":"https:\/\/aaxonix.com\/resources\/glossary\/lta-leave-travel-allowance-zoho-payroll\/","title":{"rendered":"LTA (Leave Travel Allowance)"},"content":{"rendered":"<style>\n.gt-body{font-family:'Poppins',sans-serif;color:#111;line-height:1.75}\n.gt-def{border-left:4px solid #E8650A;padding:16px 20px;background:#fff8f4;border-radius:0 8px 8px 0;margin:0 0 32px;font-size:1.05rem}\n.gt-section{margin:0 0 36px}.gt-section h2{font-family:'Fraunces',serif;color:#0A1628;font-size:1.5rem;margin:0 0 12px}\n.gt-example-box{background:#f0f4ff;border-radius:10px;padding:20px 24px;margin:0 0 32px}.gt-example-box strong{color:#2563EB}\n.gt-related-pills{display:flex;flex-wrap:wrap;gap:10px;margin:0 0 32px}\n.gt-related-pill{background:#f7f4ef;border:1px solid #ddd8cf;border-radius:20px;padding:6px 16px;font-size:.875rem;color:#0A1628;text-decoration:none}\n.gt-faq-item{border:1px solid #ddd8cf;border-radius:10px;padding:16px 20px;margin:0 0 12px}\n<\/style>\n<div class=\"gt-body\">\n<div class=\"gt-def\">Leave Travel Allowance (LTA) in Zoho Payroll is an earning component that covers the cost of domestic travel for an employee and their immediate family during approved leave. Under Section 10(5) of the Income Tax Act, LTA is exempt from income tax for a maximum of two journeys in a block of four calendar years (current block: 2022-2025), limited to the actual travel cost (economy airfare or AC train fare for the shortest route).<\/div>\n<div class=\"gt-section\">\n<h2>LTA Block Year and Exemption Rules<\/h2>\n<p>The Income Tax Act defines four-year LTA blocks. The current block is 2022-2025. Employees can claim exemption for two travels within this block. If unused, one journey can be carried forward to the first year of the next block. Zoho Payroll tracks LTA claims submitted by employees, flags unclaimed LTA at year end, and includes taxable LTA in Form 16.<\/p>\n<\/div>\n<div class=\"gt-section\">\n<h2>LTA Claim Processing in Zoho Payroll<\/h2>\n<p>Employees submit LTA claims with travel bills through the ESS portal. The payroll admin approves claims in Zoho Payroll. Approved claims reduce the taxable LTA for that month or year. If no claim is submitted, the full LTA received is treated as taxable income and included in TDS computation. Zoho Payroll does not assume LTA exemption without a formal claim.<\/p>\n<\/div>\n<div class=\"gt-section\">\n<h2>LTA Under New Tax Regime<\/h2>\n<p>Employees who opt for the new income tax regime cannot claim LTA exemption. Zoho Payroll includes the full LTA received in taxable income for TDS computation when the employee&#8217;s profile is set to the new regime. This is another key factor employees consider when choosing between tax regimes at the start of the financial year.<\/p>\n<\/div>\n<div class=\"gt-example-box\"><strong>Example:<\/strong> An employee receives LTA of Rs 2,000 per month (Rs 24,000 per year). She claims Rs 18,000 for a train journey to her home town in December. Zoho Payroll processes the claim, exempts Rs 18,000, and includes Rs 6,000 in taxable income. The exemption is reflected in Form 16 Part B for the financial year.<\/div>\n<div class=\"gt-related-pills\"><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/earning-component-zoho-payroll\/\" class=\"gt-related-pill sp-content-link\">Earning Component<\/a><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/investment-declaration-zoho-payroll\/\" class=\"gt-related-pill sp-content-link\">Investment Declaration<\/a><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/income-tax-regime-zoho-payroll\/\" class=\"gt-related-pill sp-content-link\">Income Tax Regime<\/a><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/form-16-zoho-payroll\/\" class=\"gt-related-pill sp-content-link\">Form 16<\/a><\/div>\n<div class=\"gt-faq-item\"><strong>What is LTA in Zoho Payroll?<\/strong><\/p>\n<p>LTA (Leave Travel Allowance) is an earning component in Zoho Payroll paid to employees for domestic travel during leave. It qualifies for income tax exemption under Section 10(5) for up to two journeys in a four-year block, provided actual travel bills are submitted. Zoho Payroll manages the claim and tax treatment automatically.<\/p>\n<\/div>\n<div class=\"gt-faq-item\"><strong>How does Zoho Payroll handle LTA exemption?<\/strong><\/p>\n<p>Employees submit LTA claims with supporting bills through the self-service portal. Once approved, Zoho Payroll reduces the taxable LTA by the claimed amount when computing TDS. Unclaimed LTA is treated as fully taxable and reported accordingly in Form 16 at year end.<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>LTA in Zoho Payroll is a salary component for employee travel costs during leave. Under the old tax regime, it is exempt from income tax for two journeys within a block of four calendar years.<\/p>\n","protected":false},"template":"","meta":{"seo_title":"LTA (Leave Travel Allowance) | Zoho Payroll Glossary","seo_description":"LTA in Zoho Payroll is a salary component for employee travel costs during leave. Under the old tax regime, it is exempt from income tax for two journeys w","seo_keyword":"lta (leave travel allowance) zoho payroll","seo_faqs":"[{\"q\": \"What is LTA in Zoho Payroll?\", \"a\": \"LTA (Leave Travel Allowance) is an earning component in Zoho Payroll paid to employees for domestic travel during leave. It qualifies for income tax exemption under Section 10(5) for up to two journeys in a four-year block, provided actual travel bills are submitted. Zoho Payroll manages the claim and tax treatment automatically.\"}, {\"q\": \"How does Zoho Payroll handle LTA exemption?\", \"a\": \"Employees submit LTA claims with supporting bills through the self-service portal. Once approved, Zoho Payroll reduces the taxable LTA by the claimed amount when computing TDS. Unclaimed LTA is treated as fully taxable and reported accordingly in Form 16 at year end.\"}]","term_type":"Business","glossary_related":"","glossary_links":""},"glossary_category":[1250],"class_list":["post-4511","glossary","type-glossary","status-publish","hentry","glossary_category-zoho-payroll"],"_links":{"self":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/glossary\/4511","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/types\/glossary"}],"wp:attachment":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/media?parent=4511"}],"wp:term":[{"taxonomy":"glossary_category","embeddable":true,"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/glossary_category?post=4511"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}