Understanding LTA and EL: Do Vacation Days Count as Extra Leave or Get Deducted?

Dear Seniors, kindly clarify my doubt on LTA and EL. Let's suppose one of the employees is gone for 10 days on annual vacation and has claimed LTA for it. Will these 10 days be deducted from his EL, or will these 10 days be considered additional leave?

Regards,
Krishna

Leaves will be deducted from the paid leaves only; no additional leaves are provided for the purpose of LTA.

Regards,
Divya

Dear Divya, kindly refer to your LTA (Leave Travel Allowance) policy. You can get LTA only if you have applied for leave from your company and have actually traveled. However, international travel is not valid. Only the travel costs are covered. So, whether you fly, hop on a train, or take public transport, you will have to show the ticket to claim your LTA.

LTA covers travel for yourself and your family. Family, in this case, includes yourself, parents, siblings dependent on you, spouse (even if your spouse is working), and children. You can claim the LTA benefit just once in a year. If you switch jobs, you can get the LTA not only from your present organization but also from your former employer if the concession is lying unutilized.

You must take the shortest route to your destination to be eligible for LTA. If your LTA is not utilized, it gets added to your salary, and you will be taxed on it. Hope this may clear your query.

LTA Eligibility Requirements

For LTA eligibility, any employee must work 240 days in the previous year. LTA includes Basic + D.A for one month. Anyone who does not utilize the LTA...

Thanks & Regards,
Ramesh E.
Personnel Officer
Chittoor
[Email Removed For Privacy Reasons]

Our employer denied adding to the salary (excluding new joiners) if you don't have EL or PL to surrender; a minimum of 05 is required for LTA. Please clarify.

Regards,
Vijay
[Phone Number Removed For Privacy Reasons]

One has to avail a minimum of 6 days leave from their EL/PL to qualify for LTA amount tax exemption (for the ticket cost). LTA exemption can be claimed twice in a block year of 4 years. The current block year is 2010-13.

Regards,
Pon

What if an employee does not have PL, whatever the reason may be? Should the employer deposit the LTA amount to them at year-end?

Regards,
Vijay

Vijay,

One cannot undertake travel without taking leave. That is why availing leave for claiming LTA tax exemption is made mandatory. However, LTA rules do not specify the type of leaves to be availed for claiming LTA tax exemption. In my opinion, approved LOP leaves can also be used for availing LTA with tax exemption. Otherwise, the LTA amount will be paid to the employees at the end of the FY, and it will be treated as taxable income. Hope I clarified.

Regards,
Pon

Dear Pon, Yes, got it. But is it written or is it covered under any legislation?

Regards, Vijay