Understanding LTA Calculation and Tax Exemption for Employee Benefits

Hello Dear,

This is CM Dubey, working at a private limited company as a Senior Executive (HR). I would like to know what LTA stands for. Please advise me about this.

Thank you.

Dear Dubey,

LTA stands for Leave Travel Allowance/Assistance. It differs with different companies. Some companies have it fixed as a certain percentage of the salary, while others have it fixed as a specific amount for each employment cadre.

S. Sethupathy

Dear Mr. Dubey,

It depends on the company's terms and conditions. As per my knowledge, some companies may fix the base salary on a monthly basis with benefits such as LTA per annum.

Thanks & regards,
Jana V

Hello Mr. Dubey,

LTA stands for Leave Travel Allowance. LTA can be claimed by any employee up to 2 trips in the block of 4 years. The current block of 4 years is from Jan 2010 to Dec 2013, which means an employee can claim up to 2 trips in the block of these 4 years but only once in a year.

What if an employee takes more than 2 trips? In that case, he can claim any 2 trips of the maximum amount. The LTA bill should be submitted to the company for a claim, and it is tax-exempted. If it is not claimed, it will be added to your salary and will be taxable.

I hope you have gained some insight into LTA. For further information, you may email me at apurva.panwar@rediffmail.com.

Regards,

Mr. Apurva

LTA is Leave Travel Allowance. The application of LTA depends on the personnel policies of the company, and this varies from company to company. Many companies provide this benefit to employees at a fixed sum (or even one month's basic salary). Previously, employees used to receive this sum from the company on the condition that they had to take a minimum of 5 days EL/PL. Currently, in order to receive IT benefits, employees are expected to submit proof of travel (for self & family) and claim LTA as reimbursement. Even now, the condition of taking a minimum 5 days PL prevails.

Trust this clarifies your doubt.

Thanks & regards,
R K Nair

LTA is to promote tourism in India, and the GOI has given tax sops. The travel from Kashmir to Kanyakumari for a family may not exceed 50K. Companies are free to set their LTA limit cadre-wise.

Pon

Dear Apurva,

I have sent you an email, kindly respond at your earliest convenience.

Regards,
Amit Mehra
90410 63743