I have gotten one query from one pensioner who wants to know whether leave travel concession to the pensioners will add in his income or is it exempted?I want to answer this question on the basis of Chapter III of law of Income Tax 1961. I read its one provision of section 10 (5) which is explaining in clear words that it is exempted from income of pensioner if the pensioner will follow following condition.
The value of leave travel concession provided to an individual and his family by an employer or a former employer in connection with his proceeding on leave to any place in India, or for proceeding to any place in India on retirement or termination of his services.
If you want to read its other provisions, you can go income tax's official site and at here.
Related : Exemption of Filing of Income Tax