Interim Budget 2024: Travel Industry Demands LTA exemption Annually, Instead Of Twice In 4 Years

New Delhi: As Finance Minister Nirmala Sitharaman is poised to present the Interim Budget in Parliament on February 1, several sectors are putting forth their recommendations and expectations from the Budget.

Among several demands from the travel industry, one pressing demand relates to reducing the exemption period of Leave Travel Allowance (LTA). Madhavan Menon, Executive Chairman, Thomas Cook India Ltd has recommended that government should give LTA exemption annually instead of twice in 4 years.

The Income Tax Act, 1961 offers salaried individuals LTA exemption for any two years in a block of 4 years.

Among several other demands, Menon has said that the FM should allow for standardisation of TCS at 5 percent on foreign travel packages (against the current 5 percent and 20 percent slabs). He has also demanded clarity with respect to TCS on Forex card payments.

Vishal Suri- Managing Director, SOTC Travel has also supported to Coalesce the single 5 percent slab for TCS rate on outbound tours to reduce the significant advantage enjoyed by international competitors.

He said that the government continue its focus on expediting infra development, especially extension of its Udan Yojana and Vande Bharat routes that ensures regional access and affordability. 

"Connectivity to remote but viable tourism areas creates vibrant new circuits plus meaningful employment that uplifts the entire eco-system.​ Incentives that promote sustainable travel and tourism is now a critical ask as we endeavour to preserve our planet for future generations," Suri added.