Query on LTA Payment Cycle
Dear all, please answer my query. The LTA years, as defined by the government, are calendar years and not financial years. However, in the books of accounts, the salary claims, etc., have to be settled by the financial year-end. Kindly let me know if the following is the correct way to settle the LTA claims by the organization.
The current LTA block is 2010 - 2013.
1. In case the employee travels and claims LTA with proofs until December 2010, we process the LTA as per the rules anytime before March upon bill production.
2. In case the employee doesn't travel until December 2010, then for the LTA amount of 2010, we deduct tax and pay him the amount under the LTA head in the month of March 2011. Similarly, follow this pattern for the year 2011.
I just want to know if my understanding is correct or if there is any other way of handling the LTA payment cycle.
Regards
Dear all, please answer my query. The LTA years, as defined by the government, are calendar years and not financial years. However, in the books of accounts, the salary claims, etc., have to be settled by the financial year-end. Kindly let me know if the following is the correct way to settle the LTA claims by the organization.
The current LTA block is 2010 - 2013.
1. In case the employee travels and claims LTA with proofs until December 2010, we process the LTA as per the rules anytime before March upon bill production.
2. In case the employee doesn't travel until December 2010, then for the LTA amount of 2010, we deduct tax and pay him the amount under the LTA head in the month of March 2011. Similarly, follow this pattern for the year 2011.
I just want to know if my understanding is correct or if there is any other way of handling the LTA payment cycle.
Regards