Clarification regarding exemption of value of leave travel concession under section 10(5) of the Income-tax Act, 1961

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..... grant of exemption from income-tax to the value of leave travel concession granted by an employer to an employee. In regard to assessment for assessment years 1971-72 and onwards, this concession is dealt with in section 10(5)(ii) which spells out two situations. The first is where an employee receives travel concession or assistance from his employer for himself and his family in connection with .....

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..... he following cases are specified as being exceptions to the ceiling laid down in afore-mentioned proviso: (a) where the individual is entitled to such travel concession or assistance once in a block of four calendar years commencing from the calendar year 1974, the value of such travel concession or assistance availed of in each such block; (b) where the individual is entitled to such travel c .....

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..... ployee in this block, no exemption under section 10(5) in respect of the second concession is allowed. The Board have examined the matter. Under section 10(5) read with rule 2B, the value of leave travel concession is exempt completely in a block of four years. However, if the employee is entitled to more than one leave travel concession in a block of four years, then full exemption is to be given .....

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