Hi all,
I have a question regarding claiming LTA as taxable. My wife's CTC comes under 1.5 Lakh (Below tax brackets) and the company is cutting Rs. 700 per month for LTA.
My question is, as she doesn't come under any tax bracket, can she ask for her accumulated LTA (taxable) to be released with her salary, with out giving any bills or taking any leaves?
Her company HR is saying it LTA cannot be released without taking leaves and producing bills. Is it proper? (Because even I claimed my accumulated LTA as taxable in my company on request). Is company can make their own policies on releasing LTA?
Since this is part of the CTC, what will happen to the accumulated LTA, if the employee leaves the company? They should get the total LTA with their final settlement right? Can company can make their own policies on these? unless it's is specifically mentioned on the appointment letter.
Please advise me.
Regards
Bijesh
From India
1I have a question regarding claiming LTA as taxable. My wife's CTC comes under 1.5 Lakh (Below tax brackets) and the company is cutting Rs. 700 per month for LTA.
My question is, as she doesn't come under any tax bracket, can she ask for her accumulated LTA (taxable) to be released with her salary, with out giving any bills or taking any leaves?
Her company HR is saying it LTA cannot be released without taking leaves and producing bills. Is it proper? (Because even I claimed my accumulated LTA as taxable in my company on request). Is company can make their own policies on releasing LTA?
Since this is part of the CTC, what will happen to the accumulated LTA, if the employee leaves the company? They should get the total LTA with their final settlement right? Can company can make their own policies on these? unless it's is specifically mentioned on the appointment letter.
Please advise me.
Regards
Bijesh
From India
There are different treatments to LTA. Conventionally, LTA is treated as part of employee benefits and is paid once in two years on production of bills in support of journey subject to a maximum of one's basis salary. Under this system, LTA is not shown as part of salary. Most of the traditional HRs follow this system. On the other hand, LTA is shown as part of 'CTC' by which the total cost to company is projected and from which LTA is deducted every month and finally, may be by end of yea