Struggling with LTA Issues: Can Anyone Share Their Insights?

Hi Seniors,

Could you please shed some light on this LTA issue?

Thanks,
Sunil

LTA is that part of the salary which is included in the CTC, but it is also governed by the Income Tax Rules. As per income Tax rules, an employee can claim LTA twice in the Block of Four years, which will be non-taxable. If an employee claims LTA a third time, then it is taxable. This means under the IT rules, a claim of LTA for 2 or less than 2 times is non-taxable, but if it is claimed for more than 2 times, then the LTA claim is taxable.

For example, if an employee claims LTA three times in the block of 4 years, then 2 are non-taxable and 1 is taxable.

Hi,

I have a doubt regarding LTA. One of our employees is going to resign in the month of December. Can we claim for LTA? Please reply to me.

Dear Hari,

Your question is not clear. The employee is resigning and you want to recover the LTA, which indicates that the employee has already taken the LTA in advance for the year. If this is correct, you can recover the same from the full and final settlement of the employee.

Thank you.

Hi,

I was working in a company (Pvt. Sector bank) as a Manager from May 2007 to Mar 2008 where they had mentioned that LTA is applicable to a confirmed employee only after completion of one year of service.

I have left the said company in March 2008. However, the company says that LTA can be claimed only after 1 year. I joined the company on May 9, 2007, and was on probation until Nov 2007, and after that, I was confirmed. I left the job in March 2008. They have not given it as part of full and final settlement, saying that it can be claimed only if a person has worked for more than 1 year.

The following was my salary structure in the previous organization where the LTA was also included in my Annual CTC. I have also attached a file stating the salary.

Monthly Salary

Type of Salary Per Month

Basic Salary 14670, Conveyance 800, HRA 8500, Medical Reimbursement 1250, Other Allowance 7560, Sodexho Meal Coupons 910, Provident Fund 1760, Leave Travel Allowance

Monthly Salary 35450,

Annual Salary

Type of Salary Per Annum

Basic Salary 176040, Conveyance 9600, HRA 102000, Medical Reimbursement 15000, Other Allowance 90720, Sodexho Meal Coupons 10920, Provident Fund 21120, Leave Travel Allowance 14670,

Annual CTC 440070

My appointment/offer letter of my company stated the following with respect to LTA.

You are entitled to claim LTA only after completion of one year of service in the company.

Can you confirm whether I can claim LTA from them? If they inform me that I am not eligible, how should I proceed further in the matter to claim LTA?

Thanks & Regards
Srinivas Mani
09833418230
Email: shrinivasmani@yahoo.com

Hi Rajeev, thanks, I know that, but my question is - As per the new policy, we will pay the LTA amount to all the employees in their March salary irrespective of their date of joining. In the policy document, there is no clarity on LTA claims received between the financial year. If any employee has received his LTA amount (taxable) till March in his March salary, and now he wants to submit his claims in October, how will we treat such claims?

1) We will process their LTA claims and give them tax benefits, but it will be paid only in March.
2) We will receive all such claims during the year, but we will give them tax benefits along with LTA payout in March when LTA will be disbursed.
3) Any other option.

Waiting for the reply.

Thanks & Regards,
Sunil K