LTA Claims - CiteHR
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On my offer letter LTA is eligible every year and suddenly HR writes a mail it can only be claimed once in 2 years what arguments can I give in My support
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On my offer letter LTA is eligible every year and suddenly HR writes a mail it can only be claimed once in 2 years what arguments can I give in My support
Do advice as well if the company can change thier rules as and when desired by them and forfit the earlier commitments given to employs.
Dar Frind,
Don't he in hurry, first of all have a word with the concerned person and find out. If I am not wrong thy may be trying to add some benefit to you bcause as per the Income Tax rules if you avail LTA every year one year amount is taxable in every two years hence it is better to avail once in two years so that you can avail tax exemption. They may b changing the rules with a right intention.
Thanks and regards - kamesh
I have HAd a word with the HR the simplest of answer given is that the directors feel that today a person might be working with us but what if he / she leaves after completion of 1 year of service in liew of that case they wil not be paying and LTA to employee leaving the job. So now Pls.. advice what arguments can be given so that timely LTA as per appointment letter be availed every year out here TAX is not the ISSUE but getting the rightfull DUES is the Criteria.
If LTA is part of the CTC, the employee should be paid once in a year. however, for tax exemption he/she can avail the LTA twice in a block year of 4 yrs subject to the production of travel proof.
  • Going by the inputs given by you, what your management has done is not fair and professional. They should have thought of all possibilities at the time of forming any rule or policy. these kinds of after thoughts and resultant changes in policies shows management and it's professional abilities in poor light.
  • There are ways of mitigating the risks of overpayment of annual benefits, in case of employees leaving in-between. Assuming annual LTA payable is Rs. 10000, then your LTA Rule can mention that, in the event of employee leaving the company before completion of the year, LTA claimed and paid will be recovered on pro rated basis from f & f. OR LTA will be paid on the completion of the year, so there is no question of any recovery.
  • under the circumstances, you can lodge protest and demand that, what ever is committed in offer or appointment letter should be honored. If not honored, it is nothing but cheating.

Dear members can u please explain me what is LTA and how it is helpful for tax exemption? Regards Mili
Dear Mili
LTA is Leave transport allowance, which is part of CTC and equals to basic of your salary. Now it is upto the employee whether he wants to avail it yearly or in ablock of 2 year. If the employee avails the LTA once in 2 year then that amount will be tax free and if employee avails the LTA every year, then that amount will be taxable.
Dear Talwarg,
All the answers which u have got are from senior HR Professionals,a two years LTA amount is not taxable,which is no where a benifit of the company but is inturn benifiting you............! go ahead with whatever has been told to u,its totally in your favour.
Best of Luck
Thanks and Regards
Ravibhushan Pandav
Dear All,
Thanks Kamlesh, Pon & Vivek for your valuable suggestion.
LTA i.e. Leave Travel Allowance which is paid by organisation where the person is working. The LTA is not taxable twice in a block of four calendar years (Jan-Dec etc.) based on actual spend. The journey can be performed to any place within India through road, rail or air (economy class only). Any claim more than twice in the block of 4 years is taxable. Organisation providing Travel allowance amount depend upon position & CTC of employee. Generally providing organisation LTA to employee & his/her spouse and till 2 children. And is depend upon the HR policy of organisation where the employee is working.
Thanks & Regards:
Vikas Ranjan

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