Leave Travel Concession (LTC) is granted to employees by employers for covering travel expenses when the former go on leave from work. The Government of India provides LTC to Central Government employees. It facilitates their home travel as well as travel to other parts of the country. At present, the central government employees are allowed to make two hometown visits in a block of four years. One of these two hometown visits can be substituted with an “All India” visit, according to the government rules. However, for the first two four-year blocks, as many as three hometown visits and one “All India” visit are allowed. However, the central government employee whose spouse is working in Indian Railways doesn't get LTC. 

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Tax exemption

Under Section 10(5) of the Income Tax Act, the central government employee can claim tax exemption in respect of LTC. The exemption is available to all employees. It is available in respect of the value of any travel concession or assistance received or due to the employee from his employer (including former employer) for himself and his family members in connection with his proceeding on leave to any place in India. 
There are some other provisions also that are kept in mind for tax-free LTC. These are: 

Travel by Air

When the employee completes the journey by air, the amount of tax exemption allowed is lower of the amount of economy class airfare of Air India by the shortest route or the actual amount spent. 

Travel by Rail 

When the employee completes the journey by rail, the amount of exemption is lower of the amount of airconditioned first class train fare by the shortest route or actual amount spent. The same rule applies when the journey is performed by any other mode and the place of origin of journey and destination are connected by rail.