The Statutory Brief

IT Act 1961 → 2025 / Section 10(5)

Salary

Section 10(5) → Schedule III

Leave travel concession (LTC/LTA) exemption

Section 10(5) of the old Income-tax Act, 1961 · new Schedule III under the Income-tax Act, 2025

New reference Schedule III, Table Sl. No. 8

Income-tax Act, 1961Section 10(5)

  • Exempt value of travel concession for the employee and family on leave
  • Only travel within India; fare only (economy air, AC first class rail, or bus)
  • Two journeys in a block of four calendar years
  • Not available under the new regime

Applies to FY 2025-26 (AY 2026-27) and earlier years.

Income-tax Act, 2025Schedule III, Table Sl. No. 8

  • Schedule III, Table Sl. No. 8 (eligible person: any individual)
  • Fare limits in Rule 278: economy air (any scheduled airline), AC first-class rail, deluxe bus, or ₹30 per km where there is no public transport
  • Current block: calendar years 2026–2029
  • Excluded under the new regime (section 202(2)(a)(i))

Applies from tax year 2026-27 (from 1 April 2026).

What changed

Renumbered from section 10(5) into Schedule III. Rule 278 widens air travel to the economy fare of any scheduled airline (earlier national carrier) and adds ₹30 per km where no public transport exists.

Practice notes

  • Family means spouse, children (two, for those born after 1 October 1998) and dependent parents/siblings.
  • Unused journeys from the 2022–2025 block could be carried into the first calendar year of the new block (2026).

These are summaries, not the statutory text. Read the bare Act for both sections on the Income Tax Department's official site, which also has a side-by-side comparison utility.

Frequently asked

Where is LTA exemption in the new Income Tax Act 2025?

Schedule III, Table Sl. No. 8 (old section 10(5)); old regime only.

What is the current LTA block?

Calendar years 2026 to 2029: two journeys can be claimed in this block.

What is section 10(5) called in the new Income-tax Act, 2025?

Section 10(5) of the Income-tax Act, 1961 corresponds to Schedule III of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27). Detailed reference: Schedule III, Table Sl. No. 8.

What changed in section 10(5) under the new Income Tax Act?

Renumbered from section 10(5) into Schedule III. Rule 278 widens air travel to the economy fare of any scheduled airline (earlier national carrier) and adds ₹30 per km where no public transport exists.

Is section 10(5) still applicable for FY 2025-26?

Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 10(5) of the 1961 Act. Schedule III of the 2025 Act applies from tax year 2026-27.

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