Dear Prempant,
Understanding Leave Travel Allowance (LTA) Policies
Leave Travel Allowance (LTA) rules and policies are framed by companies and are generally part of the annual CTC. Typically, LTA for a year is payable in the succeeding year. To claim LTA, the employee must undertake travel with family members (no specific guideline is available, in my opinion) and should provide proof of having spent the eligible amount for travel purposes (boarding and lodging not applicable). Normally, companies pay the eligible LTA amount, and upon the employee's return from LTA leave, supporting documents must be submitted. If the employee does not undertake any travel, the LTA amount is paid and taxed at the hands of the employee.
LTA Payment Upon Employment Cessation
In the event of cessation from employment, the company usually pays the eligible LTA amount up to the date of the employee's departure, and the amount is taxed as per IT rules. However, if the employee fails to give the notice period and quits employment without serving the notice period or without paying the notice pay, companies adjust this amount towards the dues from the employee. You have not mentioned the notice period or notice pay, so I am unable to comment on this point.
Addressing Non-Payment of LTA
If you have served the notice period and the company still refuses to pay the LTA amount, it is a very poor HR practice. In my opinion, you can write to them pointing out the amount if it was indicated in your offer of appointment. However, as mentioned by a member, there are no specific rules related to LTA.
Regards,
M.V. KANNAN