Section - 10(5) (of Income Tax Act, 1961), Income-tax Act.

In the case of an individual, the value of any travel concession or assistance received by, or due to, him,—

(a) from his employer for himself and his family, in connection with his proceeding on leave to any place in India ;

(b) from his employer or former employer for himself and his family, in connection with his proceeding to any place in India after retirement from service or after the termination of his service, Air economy fare of the national carrier (Indian Airlines or Air India) by the shortest route to the place of destination.

Air-conditioned first class rail fare by the shortest route to the place of destination.

(i) Where a recognised public transport system exists, the first class or deluxe class fare on such transport by the shortest route to the place of destination.

(ii) Where no recognised public transport system exists, the air-conditioned first class rail fare, for the distance of the journey by the shortest route, as if the journey has been performed by rail. subject to such conditions as may be prescribed (including conditions as to number of journeys and the amount which shall be exempt per head) having regard to the travel concession or assistance granted to the employees of the Central Government :

Provided that the amount exempt under this clause shall in no case exceed the amount of expenses actually incurred for the purpose of such travel.

Provided further that for the assessment year beginning on the 1st day of April, 2021, the value in lieu of any travel concession or assistance received by, or due to, such individual shall also be exempt under this clause subject to the fulfillment of such conditions (including the condition of incurring such amount of such expenditure within such period), as may be prescribed. 

Explanation 1.—For the purposes of this clause, "family", in relation to an individual, means—

(i) the spouse and children of the individual ; and



(ii) the parents, brothers and sisters of the individual or any of them, wholly or mainly dependent on the individual;

Explanation 2.—For the removal of doubts, it is hereby clarified that where an individual claims exemption and the exemption is allowed under the second proviso in connection with the prescribed expenditure, no exemption shall be allowed under this clause in respect of such prescribed expenditure to any other individual.