Madhu.T.K
Industrial Relations And Labour Laws
Subbarao.nv
Presently Working As Dy Manager Hr &
+1 Other

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Hi,
This is my first job in an IT company and in my CTC there is an LTA component under flexible benefits.It amounts to Rs50000.
I am very much confused by this component and wish to know that if I donot go on travel leave(i.e. donot avail LTA), will I get the amount set for LTA after taxation or will it be retained by the company and whether this rule is uniform across all IT companies.
I have followed multiple forums but the responses are ambiguous with some saying that the amount resides with the employee on non-avail also and others saying it goes to the organization.
Please clarify my concern as it shall guide my joining the job.
Regards,
Sainnni

From India, New Delhi
LTA as part of employee benefits can be availed only by travelling and at the same time, LTA as a component of CTC should be considered as part of salary which is paid once in a year. If proof of travel or declaration of journey undertaken is given the employee will get tax exemption subject to IT Rules. (for Income Tax department proof of travel, ie, journey tickets and hotel bills, are not required but only a declaration by the employee is sufficient)

LTA as employee benefits will be declared as payable once in two years. If it is given every year, then there will be specific mention in the travel policy of the company. CTC being an annual component of salary, should be considered as payable annually and not once in a year. In such scenario the travel policy of the company can not make it obligatory that journey tickets and hotel bills should be produced to get the amount. But the policy can provide that tax exception for LTA can be availed once in two years and for that journey tickets should be produced. But under no circumstance the company can take the amount offered to the employee as remuneration.

Madhu.T.K

From India, Kannur
Dear Sainni,
Pl contact your HR Manager and ask him / her how to claim the said amount. The procedure differs from Company to Company. In few companies, staff will draw airticket equivalent to their limit and on getting print outs, they will get it cancelled.
The booking and cancellation charges will be at your cost.
At the time of CTC negotiations, you should have opted for different perks, instead of going for LTA.
However, since this is LTA unlike LTC in Govt. Companies, applying for leave for a certain period and claiming that said amount will be done in few companies.
Pls approach your HR - Head and get it clarified immdtly.
Regards==NV Subba Rao ==09849562900

From India, Hyderabad
Dear ( Ms. Or Mr. ? ) Sainnni...
As you are aware LTA is a part and parcel of your CTC. But there may be some LTA policy in every company.... which are as follows:
** some company maintained that employee should go on leave for a minimum period of 4 days and produce the exact bills along with Travel tickets and on those bills the company re-imburse the LTA amount.
** some company maintained that employee should go on leave for a minimum perod of 4 / 5 days but no bills are required and they will be given the allotted sum in advance. ( a simple voucher for having spent the money towards LTA.
** some company say that there is no necessary to take leave and they will add the alloted amount to the employee every year in the end of the financial year.... but it may be taxable....
I do not know what kind of policy your company have...... I advise you to go to HR and discuss this issue....... to know more clarity in this....
- regards - venkat - bangalore - 9945283007 -

From India, Bangalore
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