Understanding LTA in Bangalore: Can It Be Added Monthly to Your Salary?

Hi Seniors,

I wanted more clarity on LTA aspects. Can LTA be paid to an employee each month through salary (For example: LTA amount is 10K, can Rs. 833.33 be added each month) OR does any LTA rule apply (to be paid only once in 2 years) in Bangalore. Kindly reply asap.

Regards

Hi Sanjna,

LTA refers to Leave Travel Allowance under income tax. The company is at the discretion to pay LTA monthly or yearly, but for claiming benefits under income tax, LTA has to be paid when the employee is on leave, i.e., for a vacation. The employee is expected to give a declaration of the expenses incurred during the tour to the company. This includes lodging and boarding expenses. Travel fare can be either first-class rail fare or economy class airfare.

Hope this solves your query.

Warm Regards,
CA Vikas Goel

Dear Sanjana,

LTA has been included in the salary component to save tax; this is nothing but the reimbursement. How can you reimburse without the production of original bills by the employee? It is mandatory for the employee to take at least 03 days of leave to be shown on paper. The conveyance bill should have the Service Tax Number (in the case of a private vehicle) or Railway or State Transport details. The date of leave and the date of the journey should match. Feel free to ask in case of any queries.

An employee is going on leave in 7 days, and he has 21 leaves available. So, is he eligible to receive the full LTA, or will he receive LTA based on the remaining days? Please explain.

Kindly reply as soon as possible.

Regards,
K. Mohan Reddy
[Phone Number Removed For Privacy Reasons]