LTA Claim [Thread 328892]

Dear Team,

We are paying LTA to one our employee as part of his Salary Every Month, he claims for a reimbursement for the travel he made to his home town (to & fro)

My doubt is...as we are paying him every month as a part of his salary.... is he eligible for the claim? Kindly provide me the inputs on the same


Regards

ACP

Hi!!!
As per my knowledge any employee cannot ask for or avail reimbursement if s/he travel for personal reason/benefit.
regards
vikram

LTA on monthly basis??? never heard. know about LTA procedures, tax exemption benefits, etc.

Hi !
LTA on monthly basis may be paid as perquisite to the employee( a certain % of Basic ). He can claim tax rebate two times in a period of 04 years (block year for LTA fixed by the organisation).His claim should be supported by proof of journey for him and his declared dependent family members.There is no provision for reimbursement or adjustment of LTA paid to him against the claimed journey expenditure. If he does not undertake any journey in any year LTA paid on monthly basis will be considered as taxable income.
Rakesh

Dear All,
I personally feel that the concerned employee has right to claim reimbursement of LTA @ the entitled class of accommodation for self only once in a year, not every month, provided he does not accept lumpsum LTA grant in his salary for the entire calendar year. Such actual LTA is not taxable under Income Tax act. Any LTA over and above once in a calendar year for self only or once in the block of two calendar years for self and dependent family members, would be taxable income.

Block year of LTA is not fixed by Organisation. IT is fixed by Income tax department. Current LTA block is 2010 to 2013.