Section 10(5). Leave Travel Concession
1. It is given for travelling to any place in India.
2. Where journey is performed by air: Air economy fare of the national carrier by the shortest route to the place of destination shall be exempt.
3. Where journey is performed by rail: Air-conditioned first class rail fare by the shortest route to the place of destination shall be exempt.
4. No connection by rail: 1st class or deluxe class fare of recognised public transport system shall be exempt.
5. No recognised public transport system exists: Air-conditioned first class rail fare of the shortest route shall be exempt.
6. Only two journeys in a block of 4 years is exempt :
7. The block of 2006-09 starts from 1-1-2006 and ends on 31-12-2009.
8. Only one carry over is allowed that to only for first calendar year.
E.g. Suppose only 1 journey is performed in Block 1998-2001, though the assessee is eligible for two journey. The one journey not availed by him can be carried forward for only 1 calendar year after the expiry of the block 1998-2001.i. e. unavailed journey should be availed in the calendar year 2002, otherwise carry forward exemption shall be lost.
6. Family means the spouse, children and dependents parents, brothers and sisters. Restriction on number of children.
a. born on or before 30-9-1998. Any number of children
b. born on or after 1-10-1998. Maximum two surviving children.
Note: However, children born out of multiple birth, after the first child shall be treated as one child only.