Dear all,
Pls answer my query
The LTA years as defined by the Govt are calender years and not financial years but in the books of accounts the salary claims etc have to be settled by financial year end.
Let me know if the following is the correct way to settle the LTA claims by organisation.
The current LTA block is 2010 - 2013
1. In case the employee travels & claims LTA with proofs till dec 2010 , we process the LTA as per the rules anytime before March on bills production.
2. In case the employee doesnt travel till Dec 2010, then for the LTA amount of 2010 we deduct tax & pay him the amount under the LTA head in the month of March2011. Similarly follow this pattern for year 2011.
Just want to know if my understanding is right or there is any other way of handling the LTA payment cycle.
regards
Pls answer my query
The LTA years as defined by the Govt are calender years and not financial years but in the books of accounts the salary claims etc have to be settled by financial year end.
Let me know if the following is the correct way to settle the LTA claims by organisation.
The current LTA block is 2010 - 2013
1. In case the employee travels & claims LTA with proofs till dec 2010 , we process the LTA as per the rules anytime before March on bills production.
2. In case the employee doesnt travel till Dec 2010, then for the LTA amount of 2010 we deduct tax & pay him the amount under the LTA head in the month of March2011. Similarly follow this pattern for year 2011.
Just want to know if my understanding is right or there is any other way of handling the LTA payment cycle.
regards