LTA is an allowance paid to the employee, by the employer, when the former submits original travel tickets/invoices as proof of travel while on leave.
As the name suggests, LTA exemption is restricted only to the actual cost of travel and not other related expenses. It is one of the Salary Components shown on an employee's Payslip.
An employee can claim LTA for only two journeys in a block of four years. These block years are based on the calendar year.
LTA allows an employee to spend quality time with the family or for rejuvenation. It is also one of the best tax-saving components an employee can avail of.