6
(i) All PERMANENT employees are eligible for LTA
(ii) Should completed one-year continous of service to avail LTA
(iii) EL/PL can used for LTA
(iv) Amount or reimbursement purely the management decision.
(v) For the purpose of Tax exemeption, LTA reimbursement is permitted in once in 2 yr block & travel within india
(vi) Employee, their spouse, children & dependants are eligible for LTA.
From India, Tiruchchirappalli
(ii) Should completed one-year continous of service to avail LTA
(iii) EL/PL can used for LTA
(iv) Amount or reimbursement purely the management decision.
(v) For the purpose of Tax exemeption, LTA reimbursement is permitted in once in 2 yr block & travel within india
(vi) Employee, their spouse, children & dependants are eligible for LTA.
From India, Tiruchchirappalli
• Fellow members have given their views about LTA. Some information is out of context and not true. I am also attempting to give more information on LTA. Be rest assured that, whatever I have mentioned is 100% correct.
• Firstly Leave Travel Assistance is an annual benefit. Whoever says it can be monthly has not understood the concept of LTA.
• LTA is Reimbursement of Travel Expenses incurred by employee for traveling and visiting places with family. It is expected that employee takes a break from his routine work, takes a leave and spends quality time with his family by traveling and by visiting different places. Obviously this is not possible to do monthly hence it is an Annual Benefit.
• There is no legislation prescribing LTA, hence it is not compulsory and companies can have their own rules and policies governing LTA.
• Under Income Tax Act LTA up to Rs. 20000 is Tax Exempt twice in a block of 4 years, subject to fulfillment of other conditions prescribed in law. Generally LTA policy is drafted in such a way that, employees can avail benefit of Income Tax exemption.
• Generally followed LTA Policy is to fix grade wise LTA Limits. Employee will have to avail minimum number of leaves, actually travel and submit LTA Claim covering Travel Fare, Lodging, Boarding expenses etc.
• There are certain companies who pay LTA upfront. Employee need not travel or submit claim for it. This LTA is fully taxable. Only in case employee wishes to claim Income Tax Exemption then he will have to submit LTA Claim fulfilling provisions of Income Tax Act.
Thanks & Regards
From India, Pune
• Firstly Leave Travel Assistance is an annual benefit. Whoever says it can be monthly has not understood the concept of LTA.
• LTA is Reimbursement of Travel Expenses incurred by employee for traveling and visiting places with family. It is expected that employee takes a break from his routine work, takes a leave and spends quality time with his family by traveling and by visiting different places. Obviously this is not possible to do monthly hence it is an Annual Benefit.
• There is no legislation prescribing LTA, hence it is not compulsory and companies can have their own rules and policies governing LTA.
• Under Income Tax Act LTA up to Rs. 20000 is Tax Exempt twice in a block of 4 years, subject to fulfillment of other conditions prescribed in law. Generally LTA policy is drafted in such a way that, employees can avail benefit of Income Tax exemption.
• Generally followed LTA Policy is to fix grade wise LTA Limits. Employee will have to avail minimum number of leaves, actually travel and submit LTA Claim covering Travel Fare, Lodging, Boarding expenses etc.
• There are certain companies who pay LTA upfront. Employee need not travel or submit claim for it. This LTA is fully taxable. Only in case employee wishes to claim Income Tax Exemption then he will have to submit LTA Claim fulfilling provisions of Income Tax Act.
Thanks & Regards
From India, Pune
• Fellow members have given their views about LTA. Some information is out of context and not true. I am also attempting to give more information on LTA. Be rest assured that, whatever I have mentioned is 100% correct.
• Firstly Leave Travel Assistance is an annual benefit. Whoever says it can be monthly has not understood the concept of LTA.
• LTA is Reimbursement of Travel Expenses incurred by employee for traveling and visiting places with family. It is expected that employee takes a break from his routine work, takes a leave and spends quality time with his family by traveling and by visiting different places. Obviously this is not possible to do monthly hence it is an Annual Benefit.
• There is no legislation prescribing LTA, hence it is not compulsory and companies can have their own rules and policies governing LTA.
• Under Income Tax Act LTA up to Rs. 20000 is Tax Exempt twice in a block of 4 years, subject to fulfillment of other conditions prescribed in law. Generally LTA policy is drafted in such a way that, employees can avail benefit of Income Tax exemption.
• Generally followed LTA Policy is to fix grade wise LTA Limits. Employee will have to avail minimum number of leaves, actually travel and submit LTA Claim covering Travel Fare, Lodging, Boarding expenses etc.
• There are certain companies who pay LTA upfront. Employee need not travel or submit claim for it. This LTA is fully taxable. Only in case employee wishes to claim Income Tax Exemption then he will have to submit LTA Claim fulfilling provisions of Income Tax Act.
Thanks & Regards
From India, Pune
• Firstly Leave Travel Assistance is an annual benefit. Whoever says it can be monthly has not understood the concept of LTA.
• LTA is Reimbursement of Travel Expenses incurred by employee for traveling and visiting places with family. It is expected that employee takes a break from his routine work, takes a leave and spends quality time with his family by traveling and by visiting different places. Obviously this is not possible to do monthly hence it is an Annual Benefit.
• There is no legislation prescribing LTA, hence it is not compulsory and companies can have their own rules and policies governing LTA.
• Under Income Tax Act LTA up to Rs. 20000 is Tax Exempt twice in a block of 4 years, subject to fulfillment of other conditions prescribed in law. Generally LTA policy is drafted in such a way that, employees can avail benefit of Income Tax exemption.
• Generally followed LTA Policy is to fix grade wise LTA Limits. Employee will have to avail minimum number of leaves, actually travel and submit LTA Claim covering Travel Fare, Lodging, Boarding expenses etc.
• There are certain companies who pay LTA upfront. Employee need not travel or submit claim for it. This LTA is fully taxable. Only in case employee wishes to claim Income Tax Exemption then he will have to submit LTA Claim fulfilling provisions of Income Tax Act.
Thanks & Regards
From India, Pune
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