Hello everybody, I have to draft a LTA policy for my Sr management. Can anyone help me as to how do I calculate the allowance for the same or how is the allowance calculated? Pls help
Normally, LTA shall be given to those who have completed at least one year of service. This is to ensure that the employee doesn't leave immediately after availing LTA. LTA will be in the form of journey fare reimbursement for the concerned employee as well as his family members. Some companies impose restrictions as to the number of family members like spouse, maximum two children or un married children or children of upto 21 years of age and so on and may include dependent parents also.
Normally, length of jouney to be undertaken shall also be stated in the LTA policy. It may be from place of employment to home town and back or anywhere in India or even world. The class of travel may be defined according to the category of employees and as such some will be eligible to travel by Air, some will be eligible to travel by AC class and so on.
The maximum amount which can be allowed shall be mentioned in the policy. Mostly, LTA will be paid according to the basic pay of the respective employee.
The frequency of LTA is yet another point to be considered while drafting an LTA policy. Employees may be eligible for LTA once in every year or once in two years or even three years. Normally, LTA accrues in two years.
Whether LTA lapses if unavailed should be clarified in the policy. Normally, LTA being reimbursement, it lapses if unavailed.
Generally, employees availing LTA may be eligible for advance also. The maximum percentage of advance to which employee is eligible shall be stated in the policy.
These are general guideline only. You can have your own arrangements in this regard according to the capacity of the company.
I have a big query here on LTA Tax exemption... Somebody please help me...
i have applied for LTA in my present compnay and got Tax exemption by submitting my travel bill for the year 2007-2008. For this year i.e 2008-2009 again i applied for LTA and My company finance people are not accepting LTA bills. They tell like, Since i worked for two years in my present organisation i can apply for LTA only one time... But as per Rules i hope, i can be Tax Exempted for two times in the period (2005-2009)...
i agrued many times, but i did work... my finance people are asking for proof... that i havent gone for LTA tax exemption in my previous company... how can i provide such a proof... My CTC in my previous company is below Tax slab... so i have not produced LTA bill.. but i remember i claimed the money from my preivous company..
Now i need a proof which should state that i have not claimed LTA tax Exemption in my Previous company.... its difficult to contact my previous company and ask for details...
Someone tell me... how i can get ride of this.. and be LTA Tax Expemted fot the current year 2008-2009....
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