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For tax year 2026-27, an employee who has opted out of the default regime claims leave travel concession. Ignoring the carry-over of an unused journey, how many journeys qualify in one block under…

Question and options

For tax year 2026-27, an employee who has opted out of the default regime claims leave travel concession. Ignoring the carry-over of an unused journey, how many journeys qualify in one block under the Income-tax Rules, 2026?

  1. One in two calendar years

  2. One every calendar year

  3. One in four calendar years

  4. Two in four calendar years

Answer and explanation

Correct answer: D - Two in four calendar years

Rule 278 of the Income-tax Rules, 2026, made for Schedule III (Table item 8) of the Income-tax Act, 2025, allows the exemption for two journeys in a block of four calendar years, with one unused journey carried over to the first year of the next block. The exemption is not available under the default regime.

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