Section 10(5) → Section 12
Leave Travel Concession (LTC)
Quick Answer
Section 10(5) of the Income Tax Act, 1961 (Leave Travel Concession (LTC)) corresponds to Section 12 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
Sec 10(5)
Provision Summary
Exempts value of travel concession received by an employee for proceeding on leave to any place in India (2 journeys in a block of 4 years).
Sec 12
Provision Summary
Retained but primarily relevant for the Old Tax Regime. Taxpayers opting for the default New Regime (115BAC) cannot claim this.
Key Changes & Highlights
- Relegated to a non-default option. Block year tracking digitized.
Related Sections
Frequently Asked Questions
What does Section 10(5) of the Income Tax Act 1961 deal with?
Section 10(5) (Leave Travel Concession (LTC)) Exempts value of travel concession received by an employee for proceeding on leave to any place in India (2 journeys in a block of 4 years).
What is the new section number for Section 10(5) under the Direct Tax Code 2025?
Section 10(5) of the ITA 1961 maps to Section 12 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 10(5) under the new tax code?
Section 10(5) is marked as "Retained" with status "Modified". Impact: High - Affects salaried employees' tax planning.
What are the key changes to Section 10(5) under DTC 2025?
Relegated to a non-default option. Block year tracking digitized.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
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