Understanding LTA: How Does It Affect My Salary and Tenure at Work?

I want to know more about the LTA in our company. Does it depend on the salary or the period of stay in the company? Suppose I get a salary of 16KPM, what will be the LTA applicable?

Please explain to me in detail. I don't know the ABC of LTA.

Thanks & Regards,
Narashima Reddy

LTA is a tax-exempted component. You can claim it twice in a block year of 4 for tax exemption. The current block year is 2009-13. There is no specified limit for LTA. Normally, 2 basics are allowed for LTA in a year. You have to produce travel tickets (air or rail) for claiming tax exemption. Self and his dependents are eligible for LTA travel.

Regards,
pon

Hi Pon, my salary is around 16K per month, and I have been with this company for 3 years. Can I claim the LTA from my HR team, and when should I submit the LTA? What are the documents required for submission, other than the tickets? Don't mind me asking such simple questions. Anyway, thanks for the reply.

Thanks,
Nag.

Discuss with your HR if it is part of your CTC. For your salary, you will not be liable for income tax. For availing tax benefits for LTA, you have to apply at least 6 days of PL/EL.

Regards,
Nag.

Understanding Leave Travel Assistance (LTA)

Leave Travel Assistance (LTA) is a benefit not necessarily available to everyone. Please check your Appointment Letter, HR Manual/Handbook/Policy, or consult with your HR Team to determine your eligibility.

Generally, LTA is an annually paid fixed amount and is uniform for a particular grade or category of employees. It is not necessarily linked to the length of service or salary drawn.

It depends on the salary structure of the organization. Generally, LTA is one of the salary components and will be an amount equivalent to Basic Pay. Optionally, this can be at a higher amount in the cases of seniors drawing higher remuneration. This depends on the remuneration package and can be tailor-made suitably.

This qualifies for tax exemption. However, only two LTAs are eligible for tax exemption in a block of 4 years. To avail LTA exemption, this should be claimed against bills and supportive vouchers, etc., to avail exemption.

Best wishes,
Sagala Amarnath